Penny Stocks - What are They?
I gave New York Lemon Laws daughter $250.00 to invest in the mesothelioma information market and learn about responsible investing. She did some research online and started trading car cheapest insurane quote stocks. I had never heard of penny stocks before so I decided to do some research myself and discovered a few interesting facts.
There is no free car insurance quotes online definition, but there are a few defining elements that distinguish penny stocks from other types of stocks traded on the stock market. I mortgage home refinance learned that different people have varied ways they determine if a stock can be termed a penny stock. But let's start with the basics:
The term penny stock refers to stocks that are traded for less than $5.00 per share. This is where some people differ of opinion, there are those that define penny stocks as stocks that start below $1.00 per share, but for now I'm going to say that penny stocks are $5.00 and under per share.
These stocks are not traded on the big stock exchanges such as the New York Stock Exchange (NYSE) or the American Stock Exchange (AMEX). They are traded on "pink sheets" or over-the-counter.
They are also determined by market capitalization, or the total trading value of a company. Market cap is defined as multiplying the total number of outstanding shares by the value of each share of stock. It's usually newer and smaller companies that meet the market cap definition of penny stocks.
My daughter and I also discovered that penny stocks are considered high risk/high reward investments. There is a lot of risk involved because they are so unpredictable. They could start the day as a penny stock and may not be one at the end of the trading day due to extreme price shifts, some as much as 50%. The high reward associated with them is also due to this price shift, but that's only if you sell it off before it swings back down again.
My daughter and I decided that the rewards outweighed the risks and we gave it a shot. The great thing about investing and trading penny stocks is that it requires a minimal investment and there's potential for a huge profit! We now have the ability to pick and invest in penny stocks and are enjoying the benefits, not to mention our ever increasing bank accounts too!
I have found the most reliable program for picking and investing in penny stocks. There is detailed information at my website and the program guarantees you will make money and even gives you $50 to get started. Super cool. I knew nothing about trading stock when I first started but actually doubled my money on my first trade. Go to MylaMadson.com/pennystocks MylaMadson.com/pennystocks for more info.
