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penny stock advisors

Penny Stock Investment Newsletters and Advisors - Finding the Best

Investing in penny stocks is always a hot topic. The allure of penny stocks is the sense that you can get a large position without a lot of money, and a price swing of a few cents can result in a large percentage swing. Of course, we all expect that the swings will work out in our favor, so this makes it appear that it can be a quick road to riches.

However, one of the common traits of penny stocks is that by their very nature they aren’t required to make the financial disclosures that companies on the major stock exchanges would be. This opens the whole field up to people who might prey on the unsuspecting.

Penny Stocks - How to Invest in Penny Stocks

Penny stock get a lot of press, especially in rising markets. What is a penny stock, and how do you invest in penny stocks?

For US investors, a penny stock is typically thought of a common stock that is currently trading for under $5 a share, and is not on one of the major stock exchanges, but is traded over the counter ( aka OTC) and quotes are provided through the Pink Sheets or the OTC Bulletin Board. Typically, stocks listed OTC tend to have low market capitalization (basically the total value of the entire companies stock) and don’t have a lot of trading volume (are “thinly traded”). Even if there is a lot of share volume, since the price is so low there is not a lot of dollar volume. This in itself can lead to a lot of volatility in the stock price.