Guide in penny stock investment

Guide in Penny Stock Investment

The SEC or the U.S.Securities and Exchange Commission requires each and every broker in your neighborhood to provide you as an investor a certificate, statement or asignature that proves you have received the penny stocks before you are able totrade it in the different investors. The statement that you need usually contains all the important information which is necessary that you understandand read carefully before putting your initials with. Aside from that, you will be able to think carefully your investment as the SEC requires every broker toa lot at least 2 working days before sending the statement and executing the said trade.

Since penny stocks are notoriously known for its low-priced shares, trading the shares that you just'bought can be taxing and hard to resell. Not only due to the risk of having to buy unsafe trade and with the not so good background of the stock itself. Since penny stocks can be sold over-thecounter or by using Pink Sheets. Penny stocks tend to be riskier than the other stocks available in the stock market.

Due to the characteristic of the penny stock, people with bad intention tend to use this platform to take money from the unsuspecting victim. This is one of the many reasons as to why it is not easy to trust people lurking and selling stocks in the penny stocks.However, not everyone is not worth trusting. With proper documents and legitimate statements, you can be assured that the one you are buying is from a legit company.

For you to be able to bein the loop with the latest happenings here are some of the important information that you need to know:

Make sure that your broker will give you the list of the latest offer and bid on the penny stocks you are about to buy. In addition to this, your broker must send the confirmation of the price information that he is showing to you to ensure that is legit and are from the reliable sources. This information is important for you to be able to make a good decision on your investment.

You should be able to distinguish the difference between offer price to the bid price. Whereas, bidprice is the wholesale price of the stock in which your dealer is willing to buy from the other dealer. Offer price, on the other hand, is the whole sale price in which your broker is willing to sell.+

Resources: http://www.affordablestock.com/best-penny-stocks.php https://storify.com/restjam/2-essential-things-that-will-guide-you-inpenny-st