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Slide 1: ==== ==== For more information click on the link http://4ec93or65lh91td9i1k3yire-c.hop.clickbank.net/ ==== ==== Penny Stock Egghead is what? We'll get to that, but first lets get educated... What are Penny Stocks? In short, penny stocks are any shares of stock that trade for $5 per share or less. Often times these stocks are offered from smaller unproven companies that usually trade only a few thousand shares per day. Many new investors may decide to test the market out with penny stocks because as they sound, they are low-priced and can be a great starting point. Penny stocks are considered very risky by some because they are usually offered from small companies that have no real history and thus can be difficult to locate information for making solid decisions. On the flip side of this, because these companies are not as familiar to the public as blue chip stocks (well know and proven companies i.e. Walmart) might be, they can often be acquired at bargain prices and can sometimes realize gains in the hundreds or thousands of percentage points. Where do they trade? There are many places penny stocks may trade and some are better than others. When considering buying penny stocks, one must decide if the market they are being offered in fits with their risk tolerance for investing. The 4 main exchanges and probably the safest ones include: NASDAQ SmallCap Over the counter bulletin board (OTC-BB) AMEX Canadian Market NASDAQ SmallCap- Companies within the category must remain in compliance and have strict reporting requirements. This means good visibility and easy access to company data. Over the counter bulletin board (OCT-BB)- This exchange is basically for any securities that do not fall under NASDAQ or any other National Exchange. Since it is owned by the NASDAQ, it is highly regulated and offers over 3,000 securities with real-time information regarding price and volume. AMEX- The American Stock Exchange is very similar to the NASDAQ SmallCap in regards to visibility and obtaining company data. The real difference is the AMEX trades less volume shares per day than does the NASDAQ. Canadian Market- The Toronto Securities Exchange (TSX) has a very large selection of penny
Slide 2: stocks to choose from and functions very similar to NASDAQ SmallCap and AMEX. The aforementioned markets are not the only way to trade penny stocks, but they may be the safest. Some of the other ways to obtain Penny stocks include: Pink Sheets Buying Straight from companies Buying directly over the phone Although you may avoid the commissions associated with brokers when using these 3 methods, they are much more risky for several reasons. Lack of reporting/regulation requirements, virtually no company information to base decisions on, and difficulty in buying and selling make these methods less viable for most investors. So think you may be interested in purchasing some penny stocks and are curious how to go about it? Here are few options for beginning in penny stocks: Since I recommend using one of the 4 previously mentioned safer markets to invest in, you will need a broker to buy and sell shares on your behalf. They can either be discount brokers or fullservice brokers. Discount-brokers are usually the best option since most new penny stock investors will probably have minimal starting capital to invest with. Many discount brokers offer online trading services which automate the process and allow them to charge rates as low as $5 per trade. Full service brokers are great if you like personal face time but often cost quite a lot more than discount brokers. Unlike discount brokers, they will often times make suggestions and offer their investment ideas to their clients. Alright so you know what penny stocks are, where they trade, and types a brokers. One of the last things to consider is whether you want to do all of the research yourself or pay for someones' expert advice. If you decide you enjoy researching the markets and reading the ends and outs of company profile to get a read on the latest penny stock you feel is getting ready to explode, then have at it. If on the other hand you would rather hire someone to bring you their hot picks weekly and save you loads of time, then paid services may be more for you. There are many of these companies out there and I would suggest you do your homework if you are going to go this route. If you are looking to find a place to start that will not break the bank, the Penny Stock Egghead program offers hot weekly stock picks for a one time (life time) membership fee of only $97. This course allows you to paper trade for 8 weeks (using play money) and follow their stock picks along to see if they would have made you money once you have taken the plunge with real dollars. Hope you learned something about Penny stocks you may have not known. Remember to educate yourself before jumping in... and that jumping in is the only real way to learn anything. Happy investing. JB
Slide 3: For more great unbiased information on the Penny Stock Egghead, visit my Squidoo lens at: http://www.squidoo.com/penny-stock-egghead-info JB is an entrepreneur who enjoys testing and writing about products and services in investing, real estate, and the online business arena. Article Source: http://EzineArticles.com/?expert=Jeremy_Baldridge ==== ==== For more information click on the link http://4ec93or65lh91td9i1k3yire-c.hop.clickbank.net/ ==== ====