Chapter 1: What Is A Penny Stock? Terminology
One thing that makes penny stocks so, well, frustrating to learn about is that they are often called by various different names. You may have heard them referred to as micro stock, nano stock, micro cap stock, small cap stocks and many other names. If that sounds confusing, just remember that they are generally all terms that rely simply on the fact that the stock is priced below a dollar to five dollar range. In other words, penny stocks are quite affordable, low costing stocks.
So, how to make sure that when you invest in penny stocks that your stocks go the right way for you?
Where Can I Purchase Penny Stocks
A market maker is a broker that buys and sells penny stocks at 100 shares per transaction.
If you know anything about the standard stock market, then you know that the amount of risk that something carries is something that is defined by several things. So, how to make sure that when you invest in penny stocks that your stocks go the right way for you? They will not allow those companies that are found to be fraudulent or those that are not legitimate in some other manner will not be provided with registration and therefore can not be sold as penny stocks.
|