Chapter 4: Penny Stock Bidding Success - Two Prices?
Are you confused by the two prices that are listed? Penny stocks are commonly bid on using two price figures. There are generally two bid prices listed and two ask prices listed. This is called the inside, as well as the outside, bid and ask.
This is the range in which the stock can be bought or sold. In most cases, you will want to consider the outside bid and ask prices as well as the lower bid and the higher ask prices. These are the numbers you are looking for as they are generally the costs that you will find a public customer or beginner investor is likely to need.
In any case, what you need to consider is the fact that no two stocks are the same.
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For example, in a typical situation, you are likely to get the best transaction in an agent situation.
Of course, if you do get a hold of them, you do want to take some time to insure you are talking with someone that is actually capable of providing information such as the manager or owner of the business. In short, you need to insure that what you invest in has the risk tolerance that you need. We want you to head out into the world of penny stocks with all of the information that you could possibly need to make a solid decision. They should be working for you.
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