How To Get Informed With Penny Stock Investing?
One can be called a fortunate to find a penny and keep it in the pocket. This lucky penny is now invested by the people in stocks. It is hard to believe that Penny Stock Investing is impressive.A penny can fetch much more than it has value. In this competitive economy, investmentpatterns are changing for easier and better results. Companies are trying to survive through cost reduction by cutting retirement and other benefits. Many people are trying to strengthen theirfinancial status by investing in penny stocks. This is truly humble way of investing to look forthe next goodly things.
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The fundamentals of penny stock investing:
The penny stocks are trading shares having a value below five dollars. Sometimes, it may belower than a dollar. This small value of a penny share is quite comfortable to get a foothold inthe investment market.
The term penny stocks and micro-cap stocks are sometimes interchanged in stock trading marketand regarded as the same. In practice, micro-cap stocks are to be defined on the basis marketcapitalization value. The market capitalization value of micro-cap stocks are between $50and $500 million, and penny stocks are below $5. According to the Securities and ExchangeCommission (SEC) any stock less than $5 is a penny stock.
Is a penny stock investing popular?
Penny stock investing is gaining popularity because of two crucial aspects, its simplicity andhistory. All are aware of the fascinating history of penny stocks. The immense possibilities ofgaining formidable fortune are already established by Sprint and Apple Inc. This cheap methodof becoming rich through stock investment is popular.
Can anyone make a fortune with a penny or it is risky?
Penny stock investing is more risky than blue-chip stocks due to the fact that there is not enough decision-making information available to the public. It is difficult toget penny stocks information. The Securities and Exchange Commission has not made it mandatory for the pink sheets companies to get registration.
Additionally, the pink sheets companies are not required to maintain a minimum standard to remainon the exchange. They are not required to maintain a minimum OTCBB stocks. Thecompanies get the liberty to move to smaller exchanges anytime. The minimum standards are the security requirements for any investor.
It is difficult to find out the potential of a stock due to lack of history. It is not knownwhether the companies have a poor track record or already bankrupt. The companyhistory is significant for the investors. ?Liquidity level of the stocks is extremely valuable for the investors. If the stocks liquidity level is low, it is extremely difficult to re-sell the stocks. The traders will be able to manipulate low liquidity level stocks.
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Posted by dgold74Source: http://pennystocknewsletter.info/penny-stock-picks/penny-stock-picks-and-penny-stock-investing-2015/
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