A Beginner's Guide to Penny Stocks

STOCK BRAIN presents A BEGINNER'S GUIDE TO PENNY STOCKS WHAT ARE PENNY STOCKS? COST LESS THAN $5 A SHARE TRADE OUTSIDE THE MAJOR MARKET EXCHANGES WHERE DO THEY LESS LIQUIDITY TRADE? HIGHER RISK OTC BULLETIN BOARD (OTCBB) OTC= Over-the-counter; an electronic trading service offered by the Financial Industry Regulatory Authority (FINRA). There isn't always a guaranteed buyer with penny stocks like youll find in the big stock exchanges. That means there's a chance you won't be able to sell your shares PINK SHEETS a quotation service that lists the bid and ask prices of OTC stocks once you've bought them, which makes it more risky. FACTORS TO CONSIDER WHEN INVESTING %24 VOLUME LIQUIDITY COMPANY BACKGROUND The amount of shares bought or sold over a given period of time The ability to quickly convert a position to cash. Does the company have outstanding debt? Are they a legitimate business with potential? What is the track record of the company leadership? Ask yourself, are a lot of people buying this stock? Will I be able to sell it again once I've bought it? PENNY STOCK PROMOTIONS create awareness and generate interest in a stock so others will invest BRAND BUILDERS PUMP AND DUMPS center on a company's effort to promote their brand and potential: often companies go public to raise capital for operations and further development. are very common schemes where the goal is to run up the stock (the pump), only for insiders to sell the shares (the dump), causing shares to later plumet. Buyers beware! www.stockbrainsecret.com Copyright © 2014. StockBrain. All Rights Reserved.