1. What are Penny Stocks?
Penny Stocks, according to the Securities and Exchange Commission (SEC), refers to low-priced (below $5), speculative securities of very small corporations. A penny stock is traded over OTC (Over the counter) through quotation services such as the Pink Sheets or OTC Bulletin Board.
2. Why Buy, Sell or Invest in Penny Stocks?
Penny stocks are normally shares of small corporations that have abundant potential but are not followed by normal Wall-Street money managers or stock brokers. Oftentimes, Wall-Street money managers and stock brokers won’t follow a stock unless it trades above a certain threshold, sometimes $1.00, $3.00 or even $5.00 per share. These low priced penny stock companies and shares can reward investors who get in early with very substantial returns. Sign up today for our FREE penny stock alerts so that you do not miss out on some of the best penny stocks.
3. How can I find Hot or Good Penny Stocks to Invest in?
Start by joining our FREE email list to receive alerts on the hottest Penny Stock companies. Do your research on the company we alert you to and make sure you understand the company’s business as well as its goods and services. Read the company’s reports, filings, press releases and financial statements. Speak with your registered stockbroker or financial advisor.
4. Where can I Buy, Sell or Trade Penny Stocks?
Most online brokerage firms will allow you to purchase penny stocks. Some examples would be Scottrade, TDAmeritrade, Etrade, Ing Direct, Charles Schwab, Trade King and Interactive Brokers.
5. How safe is my money in these stocks?
All investment strategies involve risk and you should always consult with your registered investment advisor or stockbroker when considering investment opportunities. While considered more speculative than other investments, penny stocks also provide the opportunity for substantial returns.
6. What kind of Penny Stocks do you alert?
We alert our members to penny stock corporations, listed on the OTC, OTCBB, NASDAQ, AMEX and even sometimes the NYSE. Mainly we tend to focus mainly on OTCBB companies that we believe have both short and long term potential. Some of the things we look for in penny stock companies are: an experienced and proven management team, goods and/or services with excellent potential, emerging growth sector, existing contracts or clients, proven track record and much more
7. Are you compensated for providing alerts?
We’re sometimes compensated for alerting our subscribers to a particular company. However, we do turn down a number of companies that approach us and we will only accept compensation for a company that we have researched and believe will provide our subscribers with substantial opportunities both for short and long term returns. Whenever we do accept compensation on an alert, as required by the
Securities and Exchange Commission (SEC), we’ll disclose who paid us, the
amount, and the type of payment within our email and website disclaimer.
8. What is a Stock Quote?
A stock quote can either mean the very last price of which a stock sold at or the current price in which market makers are prepared to buy and sell a stock. Stock quotes can be displayed in either real-time or 15-minute delay. The type of quote you obtain relies upon the source of the information and the exchange on which the stock is currently traded.
9. What are Delayed Quotes?
The easiest stock quotes to comprehend are delayed stock quotes. These quotes are typically on websites like Yahoo Finance and show the price at which the stock traded about 15 to 20 mins ago. Having said that, these prices don’t show you at what price an individual is willing to buy or sell the stock right this moment.
10. What are Real-Time Quotes
Real-time quotes are tricky since the act of buying or selling a stock can move the price up or down. This is especially valid in an “order driven market” like the New York Stock Exchange where the orders themselves set the price. Electronic exchanges such as the NASDAQ are “quote driven markets” where market makers compete to publish the best bid and ask prices for stocks. You are more inclined in this type of market to know precisely what price you will get, or there a bouts, before placing the transaction. As an example, Alphatrade.com offers real time quotes as well as Level I and Level II quotes.
11. What are Level 2 Quotes
Skilled stock traders depend on “Level 2 Quotes” to analyze the buy and sell pattern of a stock in real time in order to better predict what their own order may do to the price. Level 2 quotes display what type of institution was active in the transaction, the volume with the trade and what prices were being offered. As an example, Alphatrade.com offers real time quotes as well as Level I and Level II quotes.
