Intelligent Stock Trading

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If you want be a successful penny stock trader, you’ll need to be an intelligent trader. There are very few requirements to start trading in penny stocks. It can be broken down into three main things.

1. Money:

The money we are talking about is not just the money that is sitting in your bank account. It is not the money that you use to pay for your rent, your car or your food. Penny stocks can be extremely unpredictable and although you might make a great deal of money …
Penny Stocks, Penny Stock Trading, Buying Penny Stocks, Penny Stock Investing
If you want be a successful penny stock trader, you’ll need to be an intelligent trader. There are very few requirements to start trading in penny stocks. It can be broken down into three main things.

1. Money:

The money we are talking about is not just the money that is sitting in your bank account. It is not the money that you use to pay for your rent, your car or your food. Penny stocks can be extremely unpredictable and although you might make a great deal of money it is also true that may lose everything, so it is important especially when you are starting out with penny stocks that you only use money that you can afford to lose. After you have built up a nice profit, you can re-invest your profits from past trades which will snowball your earnings.

2. Knowledge:

This is without a doubt the single most important factor in determining whether your budding career as a penny stocks investor will be a spectacular triumph or a dismal failure. If you are a newcomer to investing of any kind there are various guides you can buy and it is a good idea to read several of these before spending any money.

Penny Stocks: The Next American Gold Rush by Dan Holtzclaw
Stock Investing for Dummies by Paul Mladjenovic
The Guide for Penny Stock Investing by Donny Lowy

These are all good and although they will not help you with specific decisions such as whether to buy a particular penny stock, or when to sell, they give you a good background on how it all works and are invaluable in building a good knowledge base.

3. Make A Plan:

Before you investing any money, make an investment plan and stick to it at all times. This will help you become disciplined and will also help you organise your time and investments. Keeping things simple will result in less stress. Your plan should consist of the investments you are going to make and why and how much you are investing in them. It should also include your exit point (the price which you will sell your investment at to take profit) and also the time you want to allocate for your investments each day (i.e. The time it takes to monitor and research them).

Now you have got all the major elements in place you are set for the roller coaster ride that is the world of investing in penny stocks But remember that knowledge is the most powerful tool you have to make your penny stocks successful so start learning today.

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How Risky is Stocks And Other Relative Investments?

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Just as the saying goes, we live in a risky world. Almost everything we do involves some degree of risk. Generally, to invest is to risk… since one is not certain about the outcome of the investment.
Stock Investing, Stock Investment, Stocks, Stock Market, Stock Trading, Penny Stocks, Buy Stocks, How To Pick Stocks, Bear Share,Share, Investment Risk, Risk Free, Business Risk,Investing Risk.
Just as the saying goes, we live in a risky world. Almost everything we do involves some degree of risk. Generally, to invest is to risk… since one is not certain about the outcome of the investment.

According to Wikipedia, investment or investing is a term with several closely-related meanings in business management, finance and economics, related to saving or deferring consumption. An asset is usually purchased, or equivalently a deposit is made in a bank, in hopes of getting a future return or interest from it.

Today, many don’t like to hear the word investment merely because it involves risks. Apparently, to invest is to risk; but we should not because of the risk avoid investing.

It will be much better for one to learn how to manage risks associated with investment rather than avoiding investing totally. A good investor should learn how to manage the various risks associated with every investment. It will not be wise for one to avoid investing merely because of the risks associated with investment.

A potential investor should also know that the risks associated with every investment varies. For instance the risk associated with Stock Investment or Stock Trading is not the same with that associated with forex trading. Likewise, the risk associated with real estate investment also defers from the risk associated with transport business. Every business we do, no matter how small has its own risk.

What is the major fear an investor faces? The major fright investors face is the fear of losing money. Each time you give investment a second thought, the next thing that may come to your mind is that you may be losing your money.

Also, if the assets you invest in are held in another currency there is a risk that currency movements alone may affect the value. This is called currency risk. To venture is to risk and it is very difficult for one to do without risk in life, since every thing in life is all about risk… even life its self is quite very risky as well.

Finally, to invest is to risk, look for a good financial adviser before embarking on any investment, or read more on how to avoid some mistakes in the investments through the author’s links below:-

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My Simple Penny Stock Picking System

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Before investing your hard-earned cash into penny stocks, it is important to research the penny stocks you want to invest in before committing any cash.. You want to find profitable penny stocks. To do this, you’ll need penny stock leads. Leads are just names of penny stocks that you are thinking of investing in.

There are many ways to get penny stock leads. For example, searching the internet (blogs and forums), joining a penny stock mailing list or keeping an eye out on…
penny stocks, investments, penny shares
Before investing your hard-earned cash into penny stocks, it is important to research the penny stocks you want to invest in before committing any cash.. You want to find profitable penny stocks. To do this, you’ll need penny stock leads. Leads are just names of penny stocks that you are thinking of investing in.

There are many ways to get penny stock leads. For example, searching the internet (blogs and forums), joining a penny stock mailing list or keeping an eye out on the news. The main idea is to build a list of around 5 to 10 quality leads that are worthy of your money.

After you have a list of leads, you’ll want to choose one or two of them. You’ll need to go through your list and discard stocks which do not meet your criteria. This process can be tedious but it will be well worth it in the end.

The criteria that I look for include – company history, business plan, opinions of individuals and experts, financial information, competition, track record of the board of directors, company reports and broker recommendations. Using the variables, I can quickly establish whether a particular stock is worth investing in.

Once my list has been cut down to 1 or 2 stocks, I’ll ask for opinions from other people to confirm my selections. It is very important to listen to the views of other investors because, in most cases, they’ll have something valuable to contribute to your research. Perhaps, you missed out a vital piece of information which other investors could highlight for you.

Now that I have 1 or 2 stocks out of my original list of 10, I feel confident that I have done my due diligence and I am ready to invest. I use this process every time I’m investing in penny stocks and , so far, it has been simple but profitable.

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Bear Market, Bull Market or Dead-cat Bounce…It Matters Little to the Stalwart Penny Stock

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Over the last eight weeks [June, 2006] I’ve been spending a lot of time reading articles describing the current market conditions…trying to figure if it really affects penny stock investors. Are we in a bull market…are we wading into a bear market. Or is the recent rally just a dead-cat bounce?
penny stock,penny stocks,stocks,bull market,market,investors,investing,stock market
Over the last eight weeks [June, 2006] I’ve been spending a lot of time reading articles describing the current market conditions…trying to figure if it really affects penny stock investors.

Are we in a bull market…are we wading into a bear market. Or is the recent rally just a dead-cat bounce?

The dead cat bounce refers to a short-term recovery in a declining trend. There’s a (relatively) old saying in investing: even a dead cat will bounce if it’s dropped from high enough.

No matter how you slice it…I’m not sure it even matters to penny stock investors like you and me.

For example…stocks surged in Japan this week as reports showed growth in manufacturing and exports. Markets rose across Asia as investors were encouraged by Wednesday’s gains on Wall Street.

Strong earnings reports from two bellwether stocks gave penny stock investors hope that rising interest rates wouldn’t kill profits. The recent sell-off, said one economist was “just turbulence.”

The turbulence, it seems, is continuing on this side of the pond. U.S. stocks traded flat to lower Thursday as the market took a breather as higher oil prices and downbeat economic data curbed Wall Street’s momentum. So, what are we to believe, is the market heading up…or heading down?

How does the market look in general terms? As far as stocks are concerned, the S&P index is up just 0.3 percent for the year, the Dow is up 3.4 percent and the NASDAQ is down 2.9 percent. Not sparkling data.

But for penny stock investors, the recent roller coaster ride that many seasoned blue chip investors are reeling over, is just par for the course. We know that a penny stock is often volatile and just as unpredictable.

While a penny stock may be more vibrant when the market is upbeat, in general, a penny stock marches to its own tune. Why? Few investors venture into the field of penny stocks because they are either unwilling or unable to do the work required to accurately predict what these shares may do.

By their nature, it is nearly impossible to know what price a penny stock share should be trading at, and conventional financial ratios and industry comparisons are rarely effective measures for realizing a penny stock’s value. Large one-day percentage gains and losses are not an uncommon occurrence for penny stock investors.

So really, bull, bear or cat…it’s just another day at the computer screen for penny stock investors. The work may be fun…but it’s not easy. Of the 14,000 public companies in the U.S., about 3,300 are considered penny stocks that trade on the OTC Bulletin Board operated by the NASDAQ.

Their visibility is low, chances are you’ve never heard of their CEO and I doubt they have any institutional following. And while they’re highly speculative, the more promising ones have a targeted business plans, and solid positions in niche markets. And for now, they’re flying under the radar of Wall Street

So what do you do in an unpredictable market like the one we’re in? Continue applying the same principles you’ve always used when searching for that untapped penny stock. And enjoy the volatility.

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How Profitable is Online Penny Stock Trading – By An Expert

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Did you know that Penny Stocks can go up percentage wise faster than any other type of share? Either with your own resource, or with the guidance of a specialist web site, turns cents into loads of dollars fast! For more info, read on?
online penny stocks, penny stocks, profitable investments
Copyright 2006 Geoff Morris

If you don’t want to risk vast sums of money on speculative stock market adventures, then Online Penny Stock Trading could be the solution you are looking for to provide quite profitable investments.

There are websites that pick penny stocks that are trading under $5.00 on both the NYSE, the NASDAQ, and other major Exchanges such as the London Stock Exchange. You have the chance to become a penny stock trading winner at any time. But the risks are very big and if you do take the advice, you could become a big winner in the penny shares market.

Simply looking at raw numerical data is not going to help you if you are new to the stock market. But you can get the advice that you need from almost any penny stocks trading website; these companies do not want to see you fail in the stock trading world. Instead they would rather see you succeed, so that they can then add another success story to their website and so they can continue to collect commissions on your trades.

There are hundreds of penny stocks trading websites available all over the Internet and you can sign up for any one of them. You get all the usual services that you would expect from a stock trading website. You get the portfolio management tools and the updated stock prices.

But some of these penny stocks trading websites will offer you the chance to sign-up to their weekly newsletter, which will contain which companies they believe will be the next big winner on the stock market.

One of the best that I have come across is the Red Hot Penny Share system, by Fleet Street Publications. Some years ago, I drew all of my various employment pensions ( which were sinking in value fast) and put them into a Self Invested Pension Plan (SIPP) , which is only available to UK taxpayers, although there may well be equivalents in the US.

By enjoying periods of very profitable online Penny Stocks Trading I actually managed to transform my $122,000 pension fund into an amount approaching $430,000 – and in less than 3 years.

The other major benefit of using the SIPP as an investment vehicle of course was that all the profitable investment returns were tax free – no capital gains tax due.

In this facility, you can actually act as you very own Pension Fund manager, only unlike the usual City Fat Cats, you have a real and determined desire to make your money work at its hardest for you.

As long as you are willing to subscribe to this sort of service, and when they say BUY you buy and when they say SELL you sell, you can make quite an improvement to what may probably be a pathetic little pension nest egg. And the further beauty is that with SIPP’s, you don’t have to cash it in at age 65 for some hit and miss annuity – you can continue to trade profitably until you are 75.

Take your time when you are looking for a penny stocks trading website. There are many websites that won’t actually offer as much services as other stock trading websites. So take your time and choose the site that best suits your needs as a trader.

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Beyond the Brink

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Learn the techniques needed to become a successful penny stock trader.
penny stock investing smallcap microcap
Penny stocks represent an excellent investment vehicle for producing gains, while the risks are equally as high. When you finally decide to get involved in penny stocks, to go ‘Beyond the Brink,’ there are some things you need to know.

In fact, whether you have been burned by penny stocks in the past, or have never even invested, the following theories are designed to give you an instant and significant advantage over all those inexperienced and uninformed traders. After all, to make money in stocks someone usually has to be losing money. Which side of the fence do you want to fall on?

Glass Jaw

Lots of people have made lots of money from trading penny stocks. Lots of people have lost plenty, as well. What is the difference between a successful micro-cap trader, and one who continually takes it on the chin?

Uses professional stock picks and research. Does their own due diligence. Observes patience. Takes lessons from past trades and stock activity. Takes lessons from other traders. Decides between 10 stocks at a time.

Uses tips at work, rumors, and so-called ‘inside scoops’ to pick stocks. Doesn’t investigate financials and corporate position. Falls victim to negative emotions like greed, anger, and desperation. Makes the same mistakes more than once. Looks at one stock alone on its own situation.

So Let’s Learn

The fact that you have taken the time to review this feature demonstrates that you have the characteristics of a successful trader, specifically the willingness to learn from experts and the experiences of other traders.
So let’s learn. As mentioned above, you should always examine groups of stocks together when looking for a new issue to invest in. For example, make a chart and write down the revenues of each. In the next column list the earnings. Follow this by each of the subsequent criteria you think are important. With all of the data on one table and available at a glance, you can easily get a clear picture of which are the one or two strongest companies from your pool of potential investments.

However, understand that stock prices do not necessarily act in concert with the underlying fundamentals of a company. For example, there is nothing saying that the stock of the worst company on your list won’t out perform the top ranked one.

For that reason you should also include factors such as trading volatility, your opinion of a potential break-through due to some new product, potential positive press releases, etc… This method is not intended to reveal the best stock, but instead to give you additional clarity about which are the best few and worst few according to your own weighting of the various factors you have chosen.

Available Advantages

Get a discount broker. Monitor your portfolio online, do your research online (and offline), and place your trades online. Embrace the technology, because it provides superior advantages all across the board. You can screen stocks, put those into comparative charts, instantly access the corporate press releases, check the latest industry news, and then place your trade… all for about $20.
Then you can monitor your trade order fulfillment, verify that the money and shares traded hands, track the progress of the stocks, get instant alerts for press releases… It is truly endless and complete, and each step that you take full advantage of leaves other traders one step behind you.

Keep small amounts of money in each stock, and only ‘risk’ money for penny stocks. While these low-priced, volatile investments can produce some truly incredible gains, they usually bounce among all sorts of price ranges.
On a related note, if you get ‘freaked out’ or worried about a stock you hold, you should consider selling your position. Try to invest in solid penny stock companies that have a low share price because they are small or undiscovered, not because they are having business troubles.

Be sure to read our related articles Falling in Hate, Fools Rush In, and Trading Myths, and our tools section on Choosing a Broker.

Beyond… And After That

Some of the most successful traders have a few things in common. Firstly, they have made some major trading mistakes in their day. However, they learned more from these mistakes than they ever did from any of their great trades. Don’t squander your failures by trying to put them behind you.

Secondly, keep a journal with dates, specific trade amounts and prices, and even the stocks you were thinking of investing in but didn’t. You can use this for a hundred different purposes as you become a more advanced trader, such as seeing opportunities you missed, or learning that your strategies are valid, or just to monitor your improvement as you become more experienced from month to month.

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Investing in Penny Stocks – How To Make Huge Profit From Small Beginnings

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Penny Stock Investing always grabs peoples dreams of instant wealth for no cost because of their name – Penny Stocks. But just what are the pitfalls of these enticing stocks and how do you avoid the painful lessons the unwary will suffer?
Penny Stock Investing,
Investing in penny stocks is all about defining the rules and playing by them as all of the big time investors have before you.

Big time stock traders and investors have played by the rules and started out small, or even very small, swearing by a defined set of rules that basically state they will not continue any cycle of failing that loses them money, over and over.

Losing money instead of learning these rules is something that is unacceptable and potentially crippling to a new investor – even though your brain is trying to tell you that “Heck, it doesn’t matter, they’re only Penny Stocks after all!” (Damn you brain!!)

However, follow a few simple rules and you should be ahead of the penny stock investing game.

Number One and MOST important – Never, ever, under any circumstance borrow money to invest; this is possibly the biggest rule to stay out of investment trouble.

Yes, I know! You think you have the upper hand with some “inside?information that could help you build a huge portfolio in no time!

So have thousands of others before you – and they were all WRONG!

Please, don’t jump on a story with the only answer being borrowing money. If you start to lose money on the stock market, then the debt repayment will come directly out of your pocket. If this happens, trust me – you are now in big trouble.

Even if you begin to make money then you will be spending it to repay the loan instead of saving or reinvesting the funds. This money will stand by and haunt you as you continue to try to make a living off of the stocks you are trading.

Always save up to be able to invest as a rule of thumb, debt will be chased until you finally catch up by being farther behind than you were to begin with.

DON’T DO IT!

Investing in profitable companies is a big rule to keep in mind when investing in penny stocks. I know that reads and sounds awfully silly and a waste of breath but believe me – sometimes people simply invest in a company without determining if the company is profitable or not.

Either they like the name itself – or the product / service the company offers – or even they know a cousin of the manager of the typing pool and reckon it’s keeping it in the family!

Don’t be the sucker that buys a stock and then tunes in to the television or logs on to the internet to see that its quarterly earnings are down and its revenue per share is dropping like a four-ton boulder of the Empire State building – very hard and very fast!).

Find information on how to find a profitable company, it is readily available on the internet, and then determine which company to invest in. Guides for how to evaluate companies, their accounts declarations and markets are readily available.

Also, do all of your homework, research and analysis before you buy a stock that is not garnering any type of attention.

One of the most important things for investors to look at is volume, anything less than one million shares per day is not worth touching. It is a pointless task to purchase a stock that is trading 9,000 shares a day because it will be nearly impossible to sell once you are ready to do so.

Stocks need attention to have liquidity, which basically means that for it to sell it must have value. Don’t be stuck with a rising stock that you will be unable to sell later. Don’t just thinkof all the lovely profit you’ll generate – think about the mechanics of actually being able to realise that profit. After all – so what if you’ve made $1.20 per share in three months – if you can’t actually sell them!

Oh – and in case you forget! DON’T BORROW MONEY FOR INVESTING!!

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Risks in penny stock investments

Penny stocks: There is always a risk factor associated with every stock, however being traded at few counters, the penny stocks are little more risky. The risk factor increases if you avoid some precautions that are necessary.

Risks: The investment in penny stocks is highly risky due to various factors. Some of the common risks are as given below.

– There is no reliable and authentic information available for penny stocks. Whatever the information comes to us that comes either through stockbrokers or through the agents of companies offering penny stocks. The seller or broker who sells the penny stocks might get money from the company for selling the shares and therefore can mislead the investor. It is therefore necessary for the investor to carry out the detailed research before investing in penny stocks.

– It is sometimes difficult to find the buyer of specific penny stocks you have purchased from the broker even the same broker may not be interested to repurchase the stocks from you.

-Sometimes the companies having no financial asset or no financial history comes in the market and collect money from investors and therefore before investing in penny stocks, you should study the company offering the penny stocks. You should study the prospectus of the company very carefully and should see whether the share prices of the stocks are justified. Some of the dealers sometime inflate the stock prices fraudulently.

– You should know your broker, as he is the main person to whom you are dealing. Ask about him from some of the other dealers and customers. You should seek complete market information from your broker including the difference in bid and sale prices of the stocks. Ask him to provide his suggestions in writing and seek a second opinion about the recommendations he made.

– You should know the nature of the stock on offer. Many times the initial public offers are more risky than other. You should invest your money after satisfying yourself from the various factors including the financial conditions and assets of the company. Sometimes you may lose a majority of your investment or your entire investment in a specific penny stocks if a careful and wise decision is not made.

– Before making an investment in a specific penny stock, you may ask about your broker’s history including any disciplinary action taken against him or her from NASD. You can also seek additional information about your broker from your state office of SEC (Securities and Exchange Commission). If still you think that you have become a victim of fraud, our federal law has provisions of rights and remedies available to you. You can file a complaint at the Securities and Exchange Commission.

Summary: Although investment in every stock is risky, even then taking some precautionary steps you can avoid risk in penny stock up to a great extent. One of the major precautionary steps is avoid hurry and do thorough research before investing in penny stocks.

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Penny stocks getting started

Introduction to Penny stocks: Penny stocks are low priced speculative stocks and these stocks are traded in over the counter (OTC) market. As per SEC (The Securities and Exchange Commission of United States) the maximum price of the penny stocks is fixed at $5.0 per share and in actual the price of these stocks are well below and sometimes a mare one cent. Although the penny stocks are commonly traded in the over the counter market, however these can also be traded at NYSE or NASDAQ.

How to start trading penny stocks: Although it is a common belief that the penny stocks are risky but at the same time as the share prices are generally low, the risk associated with penny stocks is also minimum. Many people see investing in penny stocks as an opportunity to learn share-trading techniques and at the same time not all penny stocks are risky. Although the investment in penny stocks may not substantially improve your financial condition, but the selected penny stocks may give you some profit.

If you have made your mind to invest a small amount of money in penny stocks, you will have to approach a trader or dealer for getting started. As per SEC (Securities and Exchange Commission of United States) guidelines you have to give a written request to the broker and after approval you may buy the stock from the broker. You should consult the trader and should invest carefully. Your broker will tell you the rate of the stock and brokerage.

Before investing in penny stocks contact to the Securities division of your state and get information about the broker. The history of broker provides important information about the license and disciplinary actions taken against the broker.

Once you have decided to deal with a broker, get all the information regarding the penny stocks, brokerage and other terms and conditions in writing from the broker. You should also keep the records of all the written documents provided to you by your broker. You should ask your broker to provide you the written documents mentioning the recommendation for buying or selling of any penny stocks. You should also take an independent opinion about the penny stocks from another broker and decide judiciously before making any investment. Your broker should also provide you a monthly statement mentioning the penny stocks held by you in your account and the rates of the penny stocks.

SIPC Coverage: Brokerage firms dealing in penny stocks will generally have SIPC (Securities Investor Protection Corporation) coverage. If the brokerage firm is unable to pay you your dues due to bankruptcy, the SIPC ensures that the customer owned penny stocks held by the brokerage firms are paid. SIPC insures the entire customer owned securities held by the brokerage firm, however in case of fraud, the insurer is not liable to pay the amount.

Summary: Although investment in penny stocks is not quick rich type of schemes but the investment in penny stocks may provide an opportunity to learn trading. You should take at least a second opinion about the specific company before investing in a penny stock.

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What are penny stocks?

Penny Stock: The penny stocks or shares are an investment options for those who have a small amount for investment and are willing to take risk. These stocks are generally available in very small amount and even a small investor can take a risk of investing few cents in these stocks.

Although there is some risk associated with every investment in financial market, penny stocks are good option for investment if you have some disposable amount, as here a small amount will be at risk. Broker or dealers trade these stocks and it is better to understand the financial terms associated with penny stocks. I would like to add that if you are looking some penny stocks for investment, you should learn more about penny stocks and you can find the relevant information about the subject on stock newsletter and message boards.

Stock Trading: Penny stocks are very speculative and have a market capitalization of around 500 million. These stocks are traded over the counter and the trading is governed by the SEC rules and guidelines on penny stocks. U.S Securities and Exchange Commission have laid down some rules for investment and trading in penny stocks and a beginner should keep these rules in mind before buying or trading in penny stocks.

SEC Rules on Penny Stocks: Broker-dealer registration compliance is must before buying or trading any penny stocks. A broker or dealer should get a written request and thereafter should approve the investor.

SEC further rules that a customer desirous to purchase a penny stock should be provided a document mentioning the risk involved in the penny stock. The broker or dealer should also inform the customer the current market rate of the penny stock and the commission that will be charged by the broker.

The provisions made in the appropriate sections also put a mandatory requirement of providing monthly statement to the investor showing rates of each penny stock held by the investor in his account.

Sometimes the other terms such as small caps and micro cap are also used for these companies and The United States Securities and Exchange Commission has defined penny stock as a low-priced below $ 5.0 speculative securities of very small companies.
Many small companies have low assets and offer the stocks at very low price. These low price stocks known as penny stocks are traded over the counter generally in low volumes.

The Securities and Exchange Commission strictly adheres that penny stock is low priced speculative stock and the term penny stock does not relate on market capitalization or it’s trading at the exchanges (NYSE, NASDAQ) or over the counter.

Summary: Penny stock’s definition by the Securities and Exchange commission is strictly on the basis of its value and it does not depend on other parameters such as the companies market capitalization or its listing. Investor should carefully examine all the factors associated with penny stocks before investing in them.

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