Chapter 4: Penny Stock Bidding Success - Bid versus Asking
The first thing to know is the difference between what is called the bidding price and the asking price.
In the bid price, the rate is what someone out there is willing to pay for the security or stock. This is also the number at which you could sell your stock if you decided to.
The asking price, on the other hand, is the amount at which you are willing to sell your security for. In other words, this is the amount at which others would have to pay to get your stock.
Understanding the difference here is important. If you are looking to purchase a stock, you will need to provide an accurate bid for it. If you are looking to sell your stock, you need to know what you could get for it.
He may not be able to give you specifics about which stocks he has invested in and done well with, but if he has done well, he is sure to share good stories about it.
Chop Stocks
Also, make sure to read through the confirmation to insure that your information is accurate.
They may not even have defined goals or a solid business inventory as of yet. As a new client, you should be the center of his attention. Chapter 2: Your Risk Tolerance and Penny Stock Investing Now before we get any further into penny stock investing, it is wise for you to take into consideration at least some what you level of risk tolerance. Remember, most people fail when it comes to penny stocks as the risks are that high. Or, they may decide to change from allowing to not allowing any longer. It is hard to say that one company or the next is the best one to go with, but the bottom line is that you can always find the fresh guy in the bunch.
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