My Idea Online
  • Privacy Policy
  • Contact Us
Sunday 26 March 2023
  • Login
  • News and Society
  • Automotive
  • Business
    • Business
    • Communications
    • Employment
    • Finance
    • Legal
    • Home Based Business
    • Marketing
    • Online Business
    • Product Reviews
    • Real Estate
    • Self Improvement
  • Home and Family
    • Home and Family
    • Family
    • Home Improvement
    • Kids and Teens
    • Reference and Education
  • Lifes
    • Arts and Entertainment
    • Cancer
    • Entertainment
    • Food and Drink
    • Fashion
    • Health and Fitness
    • Humor
    • Lifestyle
    • Music
    • Recreation and Sports
    • Writing and Speaking
    • Women’s Interests
  • Online
    • Computers & Internet
    • Site Promotion
    • Web Development
  • World Affairs
No Result
View All Result
  • News and Society
  • Automotive
  • Business
    • Business
    • Communications
    • Employment
    • Finance
    • Legal
    • Home Based Business
    • Marketing
    • Online Business
    • Product Reviews
    • Real Estate
    • Self Improvement
  • Home and Family
    • Home and Family
    • Family
    • Home Improvement
    • Kids and Teens
    • Reference and Education
  • Lifes
    • Arts and Entertainment
    • Cancer
    • Entertainment
    • Food and Drink
    • Fashion
    • Health and Fitness
    • Humor
    • Lifestyle
    • Music
    • Recreation and Sports
    • Writing and Speaking
    • Women’s Interests
  • Online
    • Computers & Internet
    • Site Promotion
    • Web Development
  • World Affairs
No Result
View All Result
MyIdeaOnline.com
No Result
View All Result

Finding false gold in penny stock

idea online by idea online
in Finance
3 min read
2k 125
0
3e18210046571b916ce54603 1920

3e18210046571b916ce54603 1920

1.2k
SHARES
2.6k
VIEWS
Share on FacebookShare on Twitter


As far as traders go, many do not see the penny stock as a solid way to do business. Many believe that dealing with penny stock is a risky business. And it really is. Some traders think that the next Microsoft and Walmart stock is buried in a penny stock, which is why they stick around trading unknown stocks over the market.
What is a penny stock? According to the Securities and Exchange Commission (SEC any stock under $5 is a penny stock. Definitions can vary; some set the cut-off point at $3, while others consider only those stocks trading at less than $1 to be a penny stock.
What makes a penny stock risky? Certain issues must be considered before you decide to buy a penny stock:
1. Lack of Information Available to the Public – the key to any successful investment strategy is acquiring information to make informed decisions. In dealing with penny stock, information is much more difficult to find. Much of the information available about a penny stock is typically not from a credible source.
2. No Minimum Standards – Stocks on the OTCBB and Pink Sheets like the penny stock do not have to fulfill minimum standard requirements to remain on the exchange. Sometimes, this is why the stock is on one of these exchanges. Once a company can no longer maintain its position on one of the major exchanges, the company moves one of these smaller exchanges. While the OTCBB does require companies to file timely documents with the SEC, the Pink Sheets has no such requirement. Minimum standards act as a safety cushion for some investors and as a benchmark for some companies.
3. Lack of History – Many of the companies considered to be a penny stock are either newly formed or approaching bankruptcy. These companies will generally have a poor track record or none at all. As you can imagine, the lack of histories of companies only magnifies the difficulty in picking the right stock.
4. Liquidity – When a penny stock doesn”t have much liquidity, two problems arise: first, there is the possibility that the stock you purchased cannot be sold. If there is a low level of liquidity, it may be hard to find a buyer for a particular penny stock, and you may be required to lower your price until it is considered attractive by another buyer. Second, low liquidity levels provide opportunities for some traders to manipulate stock prices, which is done in many different ways – the easiest is to buy large amounts of stock, hype it up and then sell it after other investors find it attractive

Penny stocks have been a thorn in the side of the SEC for some time because of the lack of available information and poor liquidity make these groups of stocks an easy target for fraudsters. There are many different ways these people will try to part you from your money, but here are two of the most common:
1. Biased Recommendations – Some companies pay individuals to recommend the company stock in different media, i.e. newsletters, financial television and radio shows. You may receive spam e-mail trying to persuade you to purchase a particular penny stock. Look to see if the issuers of the recommendations are being paid for their services as this is a giveaway of a bad investment and make sure that any press releases aren”t given falsely by people looking to influence the price of a penny stock.
2. Off-Shore Brokers- The SEC permits companies selling stock outside the U.S. to foreign investors to be exempt from registering stock. These companies will typically sell the penny stock at a discount to offshore brokers who, in turn, sell them back to U.S. investors for a substantial profit. By cold calling a list of potential investors (investors with enough money to buy a particular stock) and providing attractive information, these dishonest brokers will use high-pressure sales tactics to persuade investors to purchase penny stock.
Be wary when investing on a penny stock. Chances are you will lose more money by putting your trust in a penny stock.

Tags: Finance
idea online

idea online

The internet makes it easy to start a business but what should you start? Discover the right business for you to start with our definitive list of the best online ideas

Related Posts

ebf70bf31b82482d81a62bd5 1920

Single Mother On A Budget

3 days ago
ae6f385f725c3a5f10e7bb17 1920

Refinance Your House

4 days ago
cb26f9ca1a7673ccf781de0e 1920

Ready to Sign that Lease Agreement?

2 weeks ago
money finance bills bank notes 850x600 1

Buy Houses at Discount Prices!

3 weeks ago
918d75d100b01e9504cdb8ea 1920

Bad Credit? First Time Buyer? You Can Still Get Approved For A Home Mortgage Loan

3 weeks ago
pexels photo 908292 850x600 2

Where can I get a home loan? Here Are The Top 5 Mortgage Lending Institutions

4 weeks ago
No Result
View All Result

Recent Posts

  • Baby Strollers – Consider Your Budget
  • How to Wheelie like a pro on a snowboard
  • Contact an Expert
  • Looking for the most informative help relating to media.
  • Writing articles for Ezines – The Greatest Little Known Secret
  • Homeschooling — A Superior Education For Your Child
  • Home moms on eBay
  • The 5 Hindrances of the Mind: Are They Blocking Your Self-Esteem?
  • Requirements To Produce Tax Information (What’s Up With That)
  • Single Mother On A Budget
  • BREATHE EASY SALTPIPE SALT INHALER.
  • How To Hire A Web Developer
  • The Ultimate Business Model – Creating Residual Income Streams
  • The dangers of making your business to dependent on eBay
  • Dating Online – The new way to meet people
  • บริษัท
  • โรงเรียน
  • ก่อสร้าง
  • บริการ
  • กฏหมาย
  • ท่องเที่ยว
  • พนัสนิคม
  • ผู้ผลิตสินค้า
  • อิเลคทรอนิคส์
  • ราชการ
  • ไทย

© 2020 myideaonline.com - property for rent - property for sale.

No Result
View All Result
  • Home
  • Online Idea Content
  • Contact us
  • Privacy Policy

© 2020 myideaonline.com - property for rent - property for sale.

Welcome Back!

Login to your account below

Forgotten Password?

Create New Account!

Fill the forms bellow to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In