我要啦免费统计 Stock Exchange Price Updates | Stock Market Trading Updates | Online Stock Exchange Updates

13 September 2010 ~ 0 Comments

Positives & Negatives of Penny Stocks!

Usually when you think about trading stocks, the major stock exchanges come to mind as the New York Stock Exchange (NYSE), the National Association of Securities Dealers Automated Quotations (NASDAQ) and American Stock Exchange (AMEX). A penny stock is a security cheap for a very small company with a market value of less than $ 500 million and usually trade day in very small quantities. Penny stocks also trade on other exchanges another disk OTCBB and Pink Sheets.

Due to the low turnover, are penny stocks an investment option that comes with a lot of risks. According to the Securities and Exchange Commission, potential investors in penny stocks to be aware that due to the low turnover of stocks, it is possible that investors will not find a buyer for their actions. To find the exact quote is also difficult and it is a strong possibility that the investor can lose their entire investment.

Penny stocks have a certain appeal for many types of investors. Very likely, a new investor looking for a potentially lucrative investment with a relatively low entry price will run across the penny stocks. The attraction is the fact that, at low prices, potential changes are often measurable in hundreds of percent in a given day or two. The value of an investor’s shares can literally become worth double or even triple the initial investment amount of low trading volumes, penny stocks are an investment option that comes with a significant amount of risk. According to the Securities and Exchange Commission, potential investors in penny stocks should be aware that due to low trading volume of stocks, the investor may not find a buyer for shares. Search for exact dates are hard to follow what is a good chance that the investor can lose your entire investment.

On the other hand, the value of penny stock prices can fall just as quickly. New and inexperienced investors would do well to avoid penny stocks most of their investment portfolio. The exchange as low list, OCTBB and Pink Sheets, many companies are considered safe investments. Many of the companies listed on stock option do not have enough financial history to determine with precision if They Would be a good investment or not. In some cases, companies that are considered penny stocks are either new companies or in some cases, dangerously close to bankruptcy.

Unfortunately, some traders even taken to artificially manipulate stock prices by purchasing large quantities of a stock and then convincing individual investors of the need to buy. Since most of these stocks are not in high demand such an investor will have to cut its asking price to attract a bidder, often at a loss. Not all companies that match the ear should be considered fraudulent. Some are simply small businesses looking to expand their activities and work very hard to find on the market’s major markets. Vader through fraudulent companies to find good companies that can help an investor to realize a substantial profit can be worth it. Investors with low investment income may be convinced that one good trade can triple their investment, but ultimately, the investor is better off choosing an investment a society they have researched and we are confident that this business value would increase in the future.

Similar Posts:

Leave a Reply