While learning about penny stock investing, I soon discovered that the most difficult aspect of investing in penny stocks is how to find them. On the surface, the term "penny stocks" seems like a misnomer, but it is true you can literally buy and sell penny stocks for pennies. Indeed, the Security Exchange Commission (SEC) has defined penny stocks as low-priced company stocks under $5.00. With diligence and hard work you can buy penny stocks "over-the-counter" (OTC) for $0.001 to $5.00. To save money, you can do your own search from myriads of penny stocks on the OTC stock market. However, if you want to make money like most experienced investors, you might consider joining a penny stock picking service.
There are, of course, free penny stock picking services you can use, but as a sage once said, there is no free lunch in America. There are many good penny stock picking services out there, but the Penny Stock Egghead membership stands out as a one-time fee for life. As a member, they will put your email on their emailing list, and you will receive a weekly penny stock alert every Friday and a follow up on Sunday. Investing in stocks is a rat-race to wealth; and you need to have a good and reputable penny picking service on your side to win. Unfortunately, "pump and dump" penny stock promoters and other bad actors have tarnished the penny stock industry.
The Internet is so vast that searching for information on micro-cap stocks (penny stocks) can be overwhelming. Without prior knowledge, it can be difficult for beginners to avoid jumping on information that appears credible on its face but which actually is devious information by trashy promoters of pump and dump penny stocks. With "pump and dump" schemes, promoters of penny stock newsletter scams often claim to have insider information without offering specifics. Their objective, of course, is to have you sign up, and then to offer you stocks that you did plan to buy.
Learn to look for these simple things when searching for penny stock picking services:
Penny stock picking services that use misleading information in order to "pump and dump" penny stocks.
The promoter is touting what Wikipedia refers to as "insider" information not available to the general public about penny stocks.
Pump and dump newsletters that offer to provide you with a list of penny stocks that could be their own company stock without providing specifics.
If you visit stock investing chat rooms or stock message boards and you see messages from promoters recommending that you should buy certain stocks immediately.
If a promoter's campaign to "pump" a stock is successful, the promoter will likely entice unwitting investors to purchase shares of the target company. The increased demand, price, and trading volume of the stock may convince more people to believe the hype, and to buy shares as well. When the promoters behind the scheme sell (dump) their shares and stop promoting the stock, the price plummets, and other investors are left holding stock that is worth significantly less than what they paid for it.
To protect investors and the public at large from unscrupulous penny stock promoters, SEC is all out looking for pump and dump penny stock scams. According to the Washington Post, the SEC recently announced that it is redoubling its effort to combat the manipulations of "micro-cap" stocks, opening about half a dozen investigations each month into schemes suspected of bilking mom-and-pop investors. Registered companies' stocks are often classified as micro-cap or blue-chip stocks, depending on the size of a company's market capitalization.The key difference is that it is relatively easy to find information on Blue-Chip stock companies because they often file period reports with SEC.
SEC rules are intended to make sure that there is transparency and efficiency in the stock market, and that everybody plays by the same rules. However, it can be difficult for an investor to find information on penny stock companies if there are no reports made available to the public. Most experts agree that the OTC includes registered companies whose stock is not listed on the stock exchanges. Besides the SEC requirement for periodic reports, stock exchanges such as the NYSE have their own financial and market capitalization criteria for listed companies. Companies that are thinly traded or not in compliance with financial reporting requirement get delisted. It is also believed that most companies who are not listed with stock exchanges often end up on the OTC. When this happens, penny stock investors are not able to get information they would other wise get from a Blue-Chip stock company. For this reason, you need to do due diligence in dealing with thinly traded stock companies and their promoters who tout "insider" information.
The reference to micro-cap is not meant to confuse you. OTC penny stocks and Micro-cap stocks mean the same thing. Micro-cap is a term that refers to stock companies that are registered with SEC but whose stock is not listed on a major stock exchange such as the New York Stock Exchange (NYSE). Also, micro-cap stock companies include stock companies who are registered but never got listed on a stock at exchange at inception because of their size. These type of stock companies are said to be "thinly traded" because there are fewer buyers and sellers for the stock. With exception, of course, it is generally difficult to find information on micro-cap stocks, so most institutional investors avoid investing in penny stocks. In addition, because of low volumes, institutional investors are afraid of being duped by pump and dump penny stock promoters and who may manipulate stock prices. Thus, institutional investors prefer to deal in blue-chip stock companies whose periodic reports they can find and peruse to make informed investment decisions.
Unlike blue-chip companies whose stocks are listed on a national stock exchange, "over-the-counter," (OTC) is a term of art that refers to stocks bought or sold outside of a stock exchange. Moreover, micro-cap stocks are generally not listed on a national stock exchange. However, you can buy and sell them "over-the-national stock exchange.
Visit at http://getmoneyapps.com/penny-stocks to learn more about penny stocks
There are, of course, free penny stock picking services you can use, but as a sage once said, there is no free lunch in America. There are many good penny stock picking services out there, but the Penny Stock Egghead membership stands out as a one-time fee for life. As a member, they will put your email on their emailing list, and you will receive a weekly penny stock alert every Friday and a follow up on Sunday. Investing in stocks is a rat-race to wealth; and you need to have a good and reputable penny picking service on your side to win. Unfortunately, "pump and dump" penny stock promoters and other bad actors have tarnished the penny stock industry.
The Internet is so vast that searching for information on micro-cap stocks (penny stocks) can be overwhelming. Without prior knowledge, it can be difficult for beginners to avoid jumping on information that appears credible on its face but which actually is devious information by trashy promoters of pump and dump penny stocks. With "pump and dump" schemes, promoters of penny stock newsletter scams often claim to have insider information without offering specifics. Their objective, of course, is to have you sign up, and then to offer you stocks that you did plan to buy.
Learn to look for these simple things when searching for penny stock picking services:
Penny stock picking services that use misleading information in order to "pump and dump" penny stocks.
The promoter is touting what Wikipedia refers to as "insider" information not available to the general public about penny stocks.
Pump and dump newsletters that offer to provide you with a list of penny stocks that could be their own company stock without providing specifics.
If you visit stock investing chat rooms or stock message boards and you see messages from promoters recommending that you should buy certain stocks immediately.
If a promoter's campaign to "pump" a stock is successful, the promoter will likely entice unwitting investors to purchase shares of the target company. The increased demand, price, and trading volume of the stock may convince more people to believe the hype, and to buy shares as well. When the promoters behind the scheme sell (dump) their shares and stop promoting the stock, the price plummets, and other investors are left holding stock that is worth significantly less than what they paid for it.
To protect investors and the public at large from unscrupulous penny stock promoters, SEC is all out looking for pump and dump penny stock scams. According to the Washington Post, the SEC recently announced that it is redoubling its effort to combat the manipulations of "micro-cap" stocks, opening about half a dozen investigations each month into schemes suspected of bilking mom-and-pop investors. Registered companies' stocks are often classified as micro-cap or blue-chip stocks, depending on the size of a company's market capitalization.The key difference is that it is relatively easy to find information on Blue-Chip stock companies because they often file period reports with SEC.
SEC rules are intended to make sure that there is transparency and efficiency in the stock market, and that everybody plays by the same rules. However, it can be difficult for an investor to find information on penny stock companies if there are no reports made available to the public. Most experts agree that the OTC includes registered companies whose stock is not listed on the stock exchanges. Besides the SEC requirement for periodic reports, stock exchanges such as the NYSE have their own financial and market capitalization criteria for listed companies. Companies that are thinly traded or not in compliance with financial reporting requirement get delisted. It is also believed that most companies who are not listed with stock exchanges often end up on the OTC. When this happens, penny stock investors are not able to get information they would other wise get from a Blue-Chip stock company. For this reason, you need to do due diligence in dealing with thinly traded stock companies and their promoters who tout "insider" information.
The reference to micro-cap is not meant to confuse you. OTC penny stocks and Micro-cap stocks mean the same thing. Micro-cap is a term that refers to stock companies that are registered with SEC but whose stock is not listed on a major stock exchange such as the New York Stock Exchange (NYSE). Also, micro-cap stock companies include stock companies who are registered but never got listed on a stock at exchange at inception because of their size. These type of stock companies are said to be "thinly traded" because there are fewer buyers and sellers for the stock. With exception, of course, it is generally difficult to find information on micro-cap stocks, so most institutional investors avoid investing in penny stocks. In addition, because of low volumes, institutional investors are afraid of being duped by pump and dump penny stock promoters and who may manipulate stock prices. Thus, institutional investors prefer to deal in blue-chip stock companies whose periodic reports they can find and peruse to make informed investment decisions.
Unlike blue-chip companies whose stocks are listed on a national stock exchange, "over-the-counter," (OTC) is a term of art that refers to stocks bought or sold outside of a stock exchange. Moreover, micro-cap stocks are generally not listed on a national stock exchange. However, you can buy and sell them "over-the-national stock exchange.
Visit at http://getmoneyapps.com/penny-stocks to learn more about penny stocks
About the Author:
To really make money with penny stocks, you have to have investing strategies and tools to help discover the best stocks under 5. For most penny stock investors, the hard part of making money is how to find the best penny stocks to invest in. The art of making money involves learning and discovering the latest tools and techniques to make your online business successful. You can trulyBuy penny stocks using penny stock egghead by referring to our official website right now. Get the latest advice directly from this useful source of information at http://getmoneyapps.com/stock-picks.
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