No.1 Article of Penny Stocks
So you have heard of the heavy profits potential in trading penny stocks and you want a piece of the action? Lets get up to speed then. A penny stock is a share of the tasteless stock of a enterprise that trades for a price of less than and is traded over-the-counter (Otc). In simpler words these companies aren't listed on major exchanges such as Nyse, Nasdaq, Toronto Stock exchange etc.
So where do you buy them? If you are a U.S. Investor, you can three options - (1) buy Canadian enterprise listed in pink sheets, (2) open an list with a Canadian broker or (3) open an list with a Us broker that has access to Canadian securities. These options boil do whether you use a broker or do it yourself. In the case of option (1), Pink sheets Llc publishes daily a listing of companies that are ready through them. If you are going this route, you are great off doing as much explore and talking to as many citizen as you can because this is an unregulated secondary store i.e. This doesn't have any rules imposed by the Sec. In the case of the other two options, the companies are usually listed on the Tsx investment exchange till they meet the requirements for listing of the Tsx (Toronto Stock Exchange). Also, the broker through which you buy penny stocks might be able to contribute supplementary explore services but due diligence is still necessary. In case of options (1) and (3) you avoid the cost of currency exchange while buying and selling.
Penny Stocks
Two other concerns that investors should be aware of - liquidity and mystery of trading. Liquidity, as you might already know, means that we are able to buy and sell a stock in a relatively short timeframe. The good news is that most of the stocks traded on Pink Sheets are traded every day. This is by all means; of course a place where a broker's guidance would be beneficial. As far a mystery of trading goes, what you as an investor should bear in mind is that as long as you place limit orders, know your store and are aware of trends, you are in good shape.
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