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Cut Risk with Penny Stocks NASDAQ

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Penny Stocks NASDAQ: Often Overlooked

Penny Stocks NasdaqIt is easy for OTC investors to overlook penny stocks NASDAQ. After all, penny stocks are normally associated with shady brokers and questionable indexing systems. NASDAQ is the second largest stock exchange in the world, a fact that seems to clash with many people’s idea of what penny stocks are and how the work. In fact, NASDAQ actually started out dealing exclusively in over-the-counter material. Although it has branched out into other types of investments, it continues to allow the trade of low cost, high risk stocks. This has made investors looking for penny stocks NASDAQ very happy indeed.

 Penny Stocks NASDAQ: A Cut Above the Rest

 If you plan to invest in penny stocks NASDAQ, it is important to understand what makes them different from penny stocks listed on other OTC markets. Essentially, any stock that costs less than five dollars per share can be considered a penny stock. Because penny stocks do not meet the financial requirements for listing on regular exchanges, they must be listed on an exchange that specializes in over-the-counter transactions. Penny stock indexes such as the Pink Sheets require very little information or certification from the companies they list. They are almost completely unregulated. While the NASDAQ deals in over-the-counter stocks, however, they are far from unregulated. They require all companies to be registered with the SEC, and they offer trade and volume reporting as well as automated trading systems. In fact, NASDAQ was the first exchange to offer online trading, a practice that is largely responsible for their continued popularity.

While NASDAQ may offer more regulation than many OTC markets, there are still a number of risks associated with their penny stocks. After all, penny stocks are both loved and loathed because of their volatility and unpredictability. On one hand, they may double in value overnight. On the other hand, their value may plummet with no notice at all. If you are an OTC investor, however, penny stocks NASDAQ are just about the safest option on the market.

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