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.
Yet, even with this risk again comes the fact that with more risk there is more opportunity to gain as well.
Penny Stocks Stock Picks Cheap
They are generally listed there for your use.
The end result is that those that are holding the penny stocks can sell them back with no likely possibility of breaking even or they have nothing left. As we mentioned above, the next step is to keep the penny stocks for a good long time. What does that mean? Usually, people are hands off in this situation meaning that they will tell their broker what they would like them to do and the agent does just that. They are not telling you the entire truth as far as price goes.
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