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.
In other words, companies that are valued higher than this amount, those that have more inventories, for example, are those that regularly trade on the stock market.
Top Penney Stocks
You will learn to notice these things as you go throughout the process of penny stock investing.
In the sale of penny stocks, there is an additional cost to take note of. Did they answer with a simple, Hello as if it was a home? There is no wrong answer. This usually happens when they need to maintain inventory sufficient to the supply demand that is out there fore orderly and liquid markets.
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