==== ==== Secrets on how to find and invest in highly profitable penny stocks. http://tinyurl.com/7dlc2j8 ==== ====
In the U.S. market, penny stock refers to any stock that usually trades outside the major stock exchanges. These stocks are inexpensive, usually trading for under $5.00 each, and often can cost less than a single dollar. As penny stock investment is inexpensive, it is particularly interesting for those new to investment; however, there are many critical issues to be aware of before jumping into the investment world, especially into stocks. The major stock exchanges include AMEX, NASDAQ, and NYSE. The price of stocks traded in these markets can be too high for many new investors, making penny stocks a viable alternative. It is important to remember though it can be advertised as strong investments but actually be very high risk financial ventures. Severe loss can result from investment in penny stocks, and many actually lose their full value in the long term. The reason for this is due to the nature of the companies which offer penny stocks in the first place. These companies are often low capital generators, and often go out of business. Short sells are highly recommended if there is a profit to be made in penny investment. The limited liquidity of many stocks can make a short sell difficult to achieve though. The fluctuation in the market can increase the value of stock in a very short period of time. The limited liquidity or market interest in the stock can cause you to be without options for selling stocks while the selling price is higher though. This can mean you are stuck with a stock that priced well the day before but has since dropped sharply in value, making its worth nil. Stocks which appear in the major exchanges are required to possess certain financial status proofs. These proofs allow investors to know the true value of their investments, making it possible to make better and more well informed decisions. The stocks which appear in other markets do not carry the same degree of strong financial information, and can therefore be significantly riskier purchases. Penny stock investment, when performed with the assistance of a truly skilled financial advisor can be a profitable venture. It is not however one recommended for those new to the trade. Even those stocks which can appear to be of merit are often not, and a number of scams exist to promote penny stocks. If you decide to pursue stock investment and are considering penny, consultation with a financial professional or investment banker is important.
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==== ==== Secrets on how to find and invest in highly profitable penny stocks. http://tinyurl.com/7dlc2j8 ==== ====