Penny Stocks Magazine
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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.
Trading of penny stocks
Introduction to penny stocks: The trading of the regular stocks is generally takes place at the various stock exchanges, however penny stocks trading generally takes place outside of the national stock exchanges such as NYSE and NASDAQ. In general penny stocks are traded in over the counter market or OTCBB and pink sheets and some of the shares are available for pennies. A few penny stocks has a huge potential to reach the better levels and even competes the regular stocks, however there is a need to correctly identify these stocks. Smaller companies whose market capitalization is below 5 million offer the penny stocks and as soon as the company grows, there is a sharp increase in the penny stock prices.
Penny Stocks: What Are Penny Stocks?
If you’d like to get started in the stock market, many brokers may suggest you start with penny stocks. For several reasons, penny stocks are considered “easier” to buy than many other types of stock. But in order to buy penny stocks, you need to know what they are.