Chapter 4: Penny Stock Bidding Success - Mark Up Pricing
There are several things to think about when it comes to penny stock investing. In the sale of penny stocks, there is an additional cost to take note of. That is the mark up price. Some broker or dealers will mark up the price of the security to a certain degree. They do this because they have had to maintain an inventory of the product. This usually happens when they need to maintain inventory sufficient to the supply demand that is out there fore orderly and liquid markets.
In other words, to you, this is likely to be an additional cost of the penny stock. This is again the built in cost factor. This cost should be taken into consideration when it comes to your investing strategy as well as what your long term goals are.
You really need to be able to understand each difference here.
Penny Stocks List
In other words if you are the customer looking to purchase a product of any type from this company, what would you get from them?
Do your homework as we have talked about here. Nevertheless, this is a cost to take into consideration. Chapter 9: Warnings and Risks - Some Warnings 1.
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