How to Find How Much Stock a CEO Holds

Have you ever been curious about how much stock your company officers hold? Or, are you an investor who needs to know? This article gives a fairly quick method to find out, utilizing information available on the NASDAQ’s web site.
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Corporate officers enjoy many additional benefits over rank-and-file workers. For the uninitiated, it may be surprising to learn the amount of stock compensation they hold. Are you curious about how much stock the CEO and other officers of a particular company control? You can find out very easily.

This is how to uncover the amount of stock held by the officer of any publicly held company. Go to the NASDAQ web site and enter the stock ticker symbol for the company you are interested in. Click on ‘Flash Quotes’. Use the drop down box to select ‘Insider Form 4’. Scan down the list until you find the company officer’s name you are interested in. Click on that name. Go to the top of the list which should be the latest date. Move your eyes to the far right column entitled ‘holdings’. That is how many shares that officer currently holds and controls. Multiply that number by the most recent price for the company’s stock and you will arrive at a dollar figure.

Of course, that figure will change from day to day. You may be amazed at just how high that number is. Consider that this is merely the officer’s current stock holdings. It doesn’t tell you how many shares he has sold in the past; it also doesn’t tell you how many shares the company will grant him or her in the future.

When you start to look at these figures you may find them amazing. If you are currently a company CEO or officer, the numbers will not shock you because you will already be familiar with them. However, if you are currently an employee for a publicly held company you may wonder about the discrepancy between your salary and the officers’ stock holdings.

Some will say, “but the CEO and other officers worked hard for their money”. And that may very well be true. But did they really work any harder than you on a day to day basis? And if they did, does the harder work they did add up to account for the discrepancy between an average worker’s pay and a company officer’s stock holdings? Chances are, the answer is no.

This leads to some interesting realizations about how our economy works. The days of serfdom are supposed to be over, but are they really? We now have an economic feudal system. The real estate owned and tribute collected by a monarch have been replaced with stock compensation for corporate officers and owners. But the serf or worker is the one who does the work. The monarch and his court are still the ones who reap the rewards.

In private companies you probably won’t be able to find out the information that you can find on the NASDAQ web site about publicly traded companies. I think it is a good thing that the SEC or Securities and Exchange Commission requires this information to be available to the public. Of course, it is meant to be available to potential investors. But if you own stock in your company via a 401K plan, then you are an investor.

Besides the NASDAQ web site, you can also find this information on the Securities and Exchange Commission’s web site. In fact, there is a wealth of information out there to discover. In many instances it is actually easier to find on the NASDAQ web site.

Perhaps knowing the value of the stock held by company officers will make you less timid about asking for that raise you’ve been thinking about. Knowledge often equates to power.

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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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Fraudulent activities in penny stocks

An Introduction to fraudulent activities in penny stocks: We all suffer from some kind of fraud or misappropriation of our money from cheaters many times in our life. There are few people engaged in fraud and uses various fraudulent measures to sell penny stocks to people. The Securities and Exchange Commission of United States of America seems to be inappropriate in controlling all these frauds as many fraudulent activities takes place daily.

These stocks are highly risky due to various reasons and fraud is one of the reasons. Sometimes a few market makers control the stock and thus adopt the fraudulent activities such s spam and phone calls.

Role of Brokers or Market Makers: In recent past the fraudulent activities of some of the brokers or market makers has been noticed by people and reported to the Securities and Exchange Commission of United States.

If a company offers a few market makers (one or two) to sell or buy the penny stocks of the company. These market makers therefore hype about the company and mislead the investor for buying. As all the stocks of the company will be in the hands of a bunch of people, these people control the stock prices.

Many times the company pay for some dealers or brokers for selling the stocks and for getting more money, the broker or dealer adopts fraudulent methods for selling the stocks. The dealer or broker will generally contact you over phone and hype about the stocks. Sometimes the dealer or broker can use email to convince the people. The poor people and people who do not have resources to verify the particulars of such emails or such phone calls easily get victims.

Sometimes the dealer or broker may offer free stocks and after manipulating the prices can ask for more investment in a specific penny stocks. This may be one of the techniques to lure the people but you should avoid taking free penny stocks. Sometimes free pamphlets or free newsletters can be offered to the people and these free newsletters should also be avoided these newsletter may contain some misleading information. Some brokers may ask you to make investment quickly and you should avoid quick decisions, as in most of the cases this technique is part of frauds.

You should go through the prospectus of the company and see all the particulars including risk factors very carefully. Penny stocks listed at pink sheets are highly risky and you should ensure about these stocks before investing in them. You should enquire about your broker from the state office of the Securities and Exchange Commission before dealing with the broker.

Summary: By taking some of the common and simple steps, you can be safe while investing in penny stocks. Do enquire about your broker from other investors as well as from the state office of the Securities and Exchange Commission before investing in his or her recommended penny stocks.

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Penny stock picks

Penny stocks– an introduction: If you are well aware about penny stocks and want to invest some money in penny stocks, you will be interested to know how to pick penny stocks. You will find a list of many stocks being traded at the website of pink sheets and will be interested to invest in some of the future Microsoft or Wal-Mart. This may happen only if the investor picks a right penny stock otherwise he or she may lose the amount.

Limited information for penny stocks: It is really very difficult to find information on penny stocks, as there are reliable sources with us. First of all the information provided by the company may not be the correct one and suppose if the information provided is correct, it may not be relevant.

For penny stocks we are not sure how to find information about the companies offering penny stocks. These companies have to provide a very little information to Securities and Exchange Commission (SEC) and get easily listed at pink sheets. These companies are therefore not regulated by SEC, as is the case with companies listed at NASDAQ or NYSE. Furthermore the history of the companies listed at penny stocks is not available. The companies may be bankrupt or new having no experience of business and thus can be highly risky. A new investor should therefore carry out the research about the companies before putting their hard earned money into the market.

The next restriction on penny stocks is the limited liquidity. Sometimes it is difficult to sell the stock, as you may not find the buyer for it. Having very low liquidity, you may have to sell the stock at hefty discount causing you a heavy loss. Sometimes the brokers manipulate the penny stocks in various ways and may cause you sever loss so until and unless you do not understand the basics of stock market avoid investing large amount in penny stocks.

Chances of fraud: As the companies offering penny stocks are not scrutinized or regulated by government agencies or The Securities and Exchange Commission (SEC), penny stocks are more prone to fraud. Most of the times the companies spread rumors about their financial performance and other related issues and mislead the investors. Many times these companies take the help of media such as newspapers, radio or email and hype about the penny stocks offered by them. You may get several emails (spam) from their agents as well. These companies also pay for some financial consult for recommending their penny stocks to the investors.

Picking the right penny stock: Although the market of penny stock is highly risky, there are good companies also at OTCBB and pink sheets. The actual understanding is needed to identify the good penny stock and a lot of research is needed before putting money in penny stocks.

Summary: Picking of a right penny stock is the key factors for earning and you should ensure yourself that you are picking the right penny stock. Sometimes a little research can help you picking a right penny stock.

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Rules on penny stocks

Introduction to Penny Stock: The common understanding about penny stock in financial market of US is a kind of stock trading outside major stock exchanges. The major stock exchanges in US are NYSE and NASDAQ where the major stock trading takes place. For a beginner, the investment in penny stock may be a good option but at the same time he or she should understand all the related terms and the rules associated with penny stocks.

SEC Definition on Penny Stocks: Although the definition provided by the Securities and Exchange Commission is open with respect to the trading of penny stocks, these are generally not traded in NYSE or NASDAQ. There is a rare chance that these will be traded at any foreign exchange, however the Securities and Exchange Commission has put the higher ceiling of $5.0 for these speculative stocks.

US Securities and Exchange Commission: The mission and aim of the US Securities and Exchange Commission is to protect the investors from fraud, scam or other type of misappropriation. The commission is also ensure that the markets are efficient and fair. The commission also facilitates capital formation. The commission encourages more and more investors to get benefit from the share markets. It is one of the pillars for improving the economy of United States that will result more healthy opportunities for employment and better health and living standards for common people of United States.

The role of the commission is not limited to ensure proper protection of investors but it is also responsible for framing various rules and guidelines for smooth functioning of stock exchanges. It also lay guidelines for companies desirous to collect money from the market and strictly monitor the financial and other activities of such companies. It also ensures that the companies are taking care of their investors according to the rules and guidelines.

SEC Rules on Penny Stocks: As per the rules laid down by SEC, a broker or dealer is required to approve the customer desirous to sell the penny stock before the transaction. The broker should also get a written request from such customer.

SEC 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.

SEC further rules that a monthly statement of the account showing the current market rates of each penny stock held by the customer in his or her account should be send to the customer.

Summary: Penny stocks are governed by certain rules and regulation as lay down by SEC (Securities and Exchange Commission of US). The brokers and dealers should mandatory follow the instructions otherwise they are liable for punishment. The SEC rules provide protection of investors from fraud or misappropriation and dealers should also inform the investor about the current market rate and dealers commission before selling the stock.

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