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Trends of the Past Year: OTC Pink Sheets Stocks

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The Rise of OTC Pink Sheets Stocks

OTC Pink Sheets StocksOne of the biggest surprises of 2011 was the popularity of OTC pink sheets stocks. While they have long been looked down on by investors as being too risky, this misconception is quickly changing. One of the main reasons for this is the poor economy. An increasing number of investors are starting out with only a very small amount of money. The $5-per-share OTC stocks are the ideal investment for those who do not have a lot of money to start out with. There is no doubt that the pink sheets are still considered to be risky investments due to their extreme volatility. It is this volatility, however, that can also make them incredibly lucrative. With such a low initial cost, OTC pink sheets stocks boast almost limitless room for appreciation, a fact that has not gone unnoticed by many investors.

 Managing the Risks of OTC Pink Sheets Stocks

¬†As OTC pink sheets stocks become more popular, many investors are finding new ways to manage the increased risks that come along with them. Online tip sheets and advice sites have seen a sharp spike in popularity. Some site owners have taken advantage of the phenomenon and have started posting scams and recommending stocks they partly own. Many of the sites, however, are run by experienced investors and expert financial advisers. Their indispensable advice has helped many investors increase the size of their returns. Some investors have also taken it upon themselves to research companies on their own. By learning about a company’s financial history and researching its products, they are able to cut their risks by making informed decisions.

In the end, the pink sheets have not been kind to every investor who peruses their pages. Many have lost money in the past and there is no doubt that many more will in the future. Nevertheless, there is no doubt that an increasing number of people are finding ways to sidestep the risks of OTC pink sheets stocks and many are very happy with the results.

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