Penny Stocks Magazine
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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.
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: Arenít All Penny Stocks a Scam?
Most Internet e-mail users have been subject to penny stock scams. There are more than fifty billion spam messages sent each day, and many of these mention investing in penny stocks. Spam isnít a very reliable investment source, right? Does that mean that all penny stocks are, essentially, some sort of scam?