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Penny Stock Guide


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Penny Stock Guide – Basic Penny Stock Information

Penny Stock GuideTo become familiar with the world of penny stock trading and investing, it is a good idea to start by referencing a penny stock guide that explains what penny stocks are and where they trade.  The following penny stock guide provides basic information about penny stocks.

What is a Penny Stock?  A penny stock is a common stock that trades for less than $1.00 per share.  Penny stocks typically represent companies that are small with no or few revenues or companies that have entered bankruptcy and no longer qualify to list on major stock exchange.

Where Do Penny Stocks Trade?  Penny Stocks trade on the Over The Counter Bulletin Board (OTC BB) and otcmarkets.com (Pink Sheets).  Both of which are the Internet based trading platforms that facilitate the trading of penny stock shares.  Stocks can trade briefly as penny stocks on major stock exchanges, but will be delisted if their bid remains below $1.00 per share.

How Can Penny Stocks Be Traded?  Almost all of the major stock brokerage firms facilitate the trading of penny stocks.  However, commission pricing and levels of service as they pertain to penny stock trading vary significantly amongst brokerage firms.  Penny stocks can be traded online, via voice activated response, or via a live broker.

Where Can Information About Penny Stocks Be Found?

The websites for the Over The Counter Bulletin Board (otcbb.com) and Pink Sheets (otcmarkets.com) contain information about the penny stocks that trade on their platforms.  Also, many penny stock companies have websites with additional information about the companies.

Are Penny Stocks Regulated By The Security and Exchange Commission (SEC)?

All penny stocks that trade on the Over The Counter Bulletin Board are required to be in compliance with SEC reporting requirements.  Some stocks that trade on the Pink Sheets are SEC compliant (which Pink Sheets indicates); however, SEC compliance is not required to trade on the Pink Sheets.

Penny Stock Guide – Where to Find Penny Stock Trading Tips

A penny stock guide would not be complete without guidance regarding where to find penny stock trading tips.  The Internet is loaded with websites that provide penny stock trading tips.  Penny stock trading tips sites that offer email alerts, such as http://www.stockrockandroll.com/, are a good place to obtain penny stock trading tips that are sent out via e-mail.

For penny stock traders who would rather seek out their own penny stock trading tips, http://investorshub.advfn.com/ and http://siliconinvestor.advfn.com/ are the two most widely used websites for sharing and obtaining penny stock trading tips.  Investors Hub is particularly useful for finding penny stock trading tips since it has the most active penny stock tip message boards on the Internet and has company-specific message boards for many penny stocks, with company-specific discussions and information.

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