Important Facts You Need To Know About Good Stocks To Invest In To Avoid Losing Money In Highly Risky Penny Stock Trading March 2 http://www.teammlbangelsshop.com/authentic-andrew-heaney-angels-jersey/ , 2014 | Author: Remy Chikasu | Posted in Business When I first heard about Penny Stocks, I didn’t know penny stock picking services existed. The SEC defines Penny Stocks as low-priced stocks, usually under $5. You can buy and sell penny stocks “over the counter” (OTC), from a fraction of a penny to five U.S. dollars ($0.001-$5.00). For most penny stock investors, however http://www.teammlbangelsshop.com/authentic-andrelton-simmons-angels-jersey/ , the biggest problem is how to find profitable stocks under $5. You can do your own research, but most savvy stock investors subscribe to penny stock picking services for a monthly fee.
There are, of course, free penny stock picking services you can use, but as a sage once said http://www.teammlbangelsshop.com/authentic-albert-pujols-angels-jersey/ , 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 http://www.teammlbangelsshop.com/hats/ , 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.
Penny stock picking services that use misleading information in order to “pump and dump” penny stocks.
According to Wikipedia, often the stock promoter will claim to have “insider” information about impending news.
Newsletters may purport to offer unbiased recommendations, or tout a company as a “hot” stock, for their own benefit.
Promoters may also post messages in chat rooms or stock message boards urging readers to buy the stock quickly.
You can understand why institutional investors usually avoid investing in penny stocks OTC when you understand the net effect of pump and dump schemes. When promoters of pump and dump penny stocks decide to sell their holdings of company penny stock whose price they helped to hype, the investors who purchased the stocks in question will be left with penny stocks that have no value.
To protect investors and the public at large from unscrupulous penny stock promoters http://www.teammlbangelsshop.com/hoodie/ , 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.
On the other end, it is not easy to find information on penny stocks. It is generally believed that a significant number of OTC stocks are penny stocks of companies that are registered but are not listed on the stock exchange for a variety of reasons. One possible reason could be that these companies were “delisted” for failing to comply with the filing of periodic reports with the SEC. The other possible explanation is they are just too “thinly traded” to be listed. As a result http://www.teammlbangelsshop.com/customized/ , trashy penny stock promoters reportedly try to take advantage of many small investors who lack adequate information on micro-cap stocks.
What you need to know is that OTC penny stocks are also known as microcap stocks. It is a term of art that refers to registered companies whose stock is not listed on the main stock exchanges or is thinly traded. A company stock is thinly trade if there are fewer buyers and sellers for penny stocks. When compared to blue-chip stocks, it is generally thought that institutional lenders avoid penny stocks for lack of information and transparency. In addition, microcap stocks are susceptible to manipulations because of low volume transactions.
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 http://www.teammlbangelsshop.com/ , micro-cap stocks are generally not listed on a national stock exchange. However, you can buy and sell them “over-the-national stock exchange.
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