Posts Tagged ‘Nyse’
Learn Penny Stocks
Written by troy on Wednesday, April 01, 2009 | No Comments
Categories: Uncategorized Tags: Investment Strategy, Nyse, Penny Stock Brokers, Penny Stock Trading, Stock Investing
Contrary to the “facts” that NYSE, NASDAQ and AMEX have “virally” spread on the internet, penny stock trading isn’t really that bad of an investment.
The reason why penny stock trading is said to be a high risk investment is, it involves shares from small and “seemingly” unstable companies. Penny stocks came from names that you haven’t yet or wouldn’t by any chance, spot on television commercials or print ads – these companies offer shares that make for speculative investments. Basically, penny stock, in investing terms, refers to any stock trading that’s done outside the major exchanges. So, why do others still do penny stock trading, you ask? It’s because of trust (and maybe, frustration), our friend. Plus, even stock trading at NYSE, NASDAQ or AMEX involves risk, right?
To do well (and be able to get through the risks) in penny stock trading, you need to sacrifice a few dollars — yes, you have to pay for your “safety”. Paying a portion of your income to penny stock brokers might well be worth it. Actually, doing so makes for a good investment strategy. Brokers use almost all the possible sources of information on all pink-sheet listed companies– they try to foresee potential market risks that could otherwise cost their investor clients.
You may also use the many penny stock listings available online. Sites to check out include allstocks.com, pennymarkets.com and pennystock.com.
Here’s what you should remember: trading penny stocks is a tough business to be in, but once you master it, you’re on the way to live all your dreams. For more information and step by step tips On Penny Stocks visit, http://learnpennystocks.com
By: Jizmack Baraceros
About the Author:
The reason why penny stock trading is said to be a high risk investment is, it involves shares from small and “seemingly” unstable companies. Penny stocks came from names that you haven’t yet or wouldn’t by any chance, spot on television commercials or print ads – these companies offer shares that make for speculative investments. Basically, penny stock, in investing terms, refers to any stock trading that’s done outside the major exchanges. So, why do others still do penny stock trading, you ask? It’s because of trust (and maybe, frustration), our friend. Plus, even stock trading at NYSE, NASDAQ or AMEX involves risk, right?
To do well (and be able to get through the risks) in penny stock trading, you need to sacrifice a few dollars — yes, you have to pay for your “safety”. Paying a portion of your income to penny stock brokers might well be worth it. Actually, doing so makes for a good investment strategy. Brokers use almost all the possible sources of information on all pink-sheet listed companies– they try to foresee potential market risks that could otherwise cost their investor clients.
You may also use the many penny stock listings available online. Sites to check out include allstocks.com, pennymarkets.com and pennystock.com.
Here’s what you should remember: trading penny stocks is a tough business to be in, but once you master it, you’re on the way to live all your dreams. For more information and step by step tips On Penny Stocks visit, http://learnpennystocks.com
By: Jizmack Baraceros
About the Author:
Freelance Web designer and Artist
Penny Stocks – What Are They?
Written by troy on Tuesday, March 03, 2009 | No Comments
Categories: Uncategorized Tags: Microcap Stocks, Nyse, penny stock, Pink Sheets
You may have heard of it before and probably ignored it because you didn’t understand it, or the whole term now that you hear it is Greek to you. A stock market placement that earns you a penny? It’s very confusing indeed but not that difficult to understand.
You’re probably familiar with the NASDAQ, AMEX, and NYSE. Or maybe not. These are the major stock exchanges, where the stocks of big companies are traded. Anything outside of that is called penny stock trading.
A penny stock is a stock that is traded at under $5.00 per share. These are stocks of companies whose capitalization is below $300 million. Penny stocks are also called micro stocks, small caps, or microcap stocks.
Penny stocks are traded over the counter meaning directly between two parties: you and the seller through a market maker. A market maker, also called a broker-dealer, is a company that quotes a buy price and a sell price on a stock. Over the counter trading (OTC) works like this: A company wants to sell its stock, and approaches a market maker. The market maker quotes a buy price to the seller, and decides on sell price.
The sell price is published on an electronic quotation service, usually online, such as the otcbb or Pink Sheets. You see the stock, you like the price, and you buy it from the market maker. As the stock increases in value you make your profit. The market maker made his profit on the spread between the seller’s selling price (his buying price) and the price at which he sold the stock to you (his selling price).
The OTCBB, or Over The Counter Market Bulletin Board, is a regulated quotation service displaying real time quotes, last sale prices, and volume information on penny stocks. Companies trading on the OTCBB are required to report their financial information to the SEC, banking, or insurance regulators to meet eligibility requirements.
Companies that don’t report their financials are marked on the board with an at the end of its ticker symbol, and given 30 days to report. If at the end of the 30-day grace period the company still has not reported its financial information, it is delisted from the OTCBB and moved to the Pink Sheets.
The pink sheet is an electronic quotation service owned and operated by Pink Sheets lic. Because companies are not required to fulfill any requirements in order to be listed on the Pink Sheets, this is where most small companies who do not wish to disclose their financials choose to trade their penny stocks. The pink sheets are so named because of the color of the paper on which the stock quotes are printed.
Penny stocks can be big earners because there are only a few of you trading the stocks, but they also pose a higher risk than the major stock exchange trading. Because there are very few traders, a buy or a sell can make the value of the stock jump high or low very quickly. Unlike stocks in the major boards where the rise and decline in value is slow, penny stocks can easily jump up by 25% on any given day, and just as easily decline by that same percentage on any day.
Most of the people who trade penny stocks are those trying to find that quick buck or hoping to discover a diamond in the rough. With penny stocks there is no guarantee that the stock you are buying will be a worthwhile investment because this kind of stock is easy to manipulate.
If you’re looking for a stock investment but have only a small amount to invest, penny stocks may be for you. But before you invest on any particular penny stock, make sure you do your research on the company’s legitimacy, financials, and performance. It may be easier to invest in penny stocks because they’re affordable, but you may just as easily lose your investment if you’re not careful.
By: Nir Dotan
About the Author:
You’re probably familiar with the NASDAQ, AMEX, and NYSE. Or maybe not. These are the major stock exchanges, where the stocks of big companies are traded. Anything outside of that is called penny stock trading.
A penny stock is a stock that is traded at under $5.00 per share. These are stocks of companies whose capitalization is below $300 million. Penny stocks are also called micro stocks, small caps, or microcap stocks.
Penny stocks are traded over the counter meaning directly between two parties: you and the seller through a market maker. A market maker, also called a broker-dealer, is a company that quotes a buy price and a sell price on a stock. Over the counter trading (OTC) works like this: A company wants to sell its stock, and approaches a market maker. The market maker quotes a buy price to the seller, and decides on sell price.
The sell price is published on an electronic quotation service, usually online, such as the otcbb or Pink Sheets. You see the stock, you like the price, and you buy it from the market maker. As the stock increases in value you make your profit. The market maker made his profit on the spread between the seller’s selling price (his buying price) and the price at which he sold the stock to you (his selling price).
The OTCBB, or Over The Counter Market Bulletin Board, is a regulated quotation service displaying real time quotes, last sale prices, and volume information on penny stocks. Companies trading on the OTCBB are required to report their financial information to the SEC, banking, or insurance regulators to meet eligibility requirements.
Companies that don’t report their financials are marked on the board with an at the end of its ticker symbol, and given 30 days to report. If at the end of the 30-day grace period the company still has not reported its financial information, it is delisted from the OTCBB and moved to the Pink Sheets.
The pink sheet is an electronic quotation service owned and operated by Pink Sheets lic. Because companies are not required to fulfill any requirements in order to be listed on the Pink Sheets, this is where most small companies who do not wish to disclose their financials choose to trade their penny stocks. The pink sheets are so named because of the color of the paper on which the stock quotes are printed.
Penny stocks can be big earners because there are only a few of you trading the stocks, but they also pose a higher risk than the major stock exchange trading. Because there are very few traders, a buy or a sell can make the value of the stock jump high or low very quickly. Unlike stocks in the major boards where the rise and decline in value is slow, penny stocks can easily jump up by 25% on any given day, and just as easily decline by that same percentage on any day.
Most of the people who trade penny stocks are those trying to find that quick buck or hoping to discover a diamond in the rough. With penny stocks there is no guarantee that the stock you are buying will be a worthwhile investment because this kind of stock is easy to manipulate.
If you’re looking for a stock investment but have only a small amount to invest, penny stocks may be for you. But before you invest on any particular penny stock, make sure you do your research on the company’s legitimacy, financials, and performance. It may be easier to invest in penny stocks because they’re affordable, but you may just as easily lose your investment if you’re not careful.
By: Nir Dotan
About the Author:
Nir Dotan is a writer and promoter of
Penny Stocks
services, and
Penny Stocks Preferred source for the latest news and information on the best and brightest Small Cap Stocks.