The First and most important rule to becoming successful at anything, whether it’s painting a masterpiece or becoming a great athlete is educating your self. Knowledge is power! You must know what brushes create what kind of strokes in the paint or you must know how the game of golf is played prior to playing the game.
Now I’m going to educate you a little in this article about penny stocks. You need to know this information before I can reveal to you the Insider Secrets to Penny Stocks.
NYSE, NASDAQ, or AMEX are the major exchanges in the stock market today, Penny stocks are generally sold under $5 or outside of these major stock exchanges. Because of this penny stocks are considered to be a very lucrative and sometimes risky investment. Many new investors are lured to the appeal of micro-cap shares and low-priced equities due to potential for rapid growth. Penny stocks are a risky investment and investors need to be aware of the risks involved.
These risks include:
1- Limited liquidity; a lack of liquidity can make them more vulnerable to price manipulation.
2- Lack of financial reporting; there are typically fewer requirements in the line of reporting for penny stocks for the reason that they are not usually exchanged in the major stock exchanges.
3- fraud: Like any great money venture there are people who make fraudulent attempts to rip people off. Investors need to be aware and be smart about avoiding Scams. Common scams include spam e-mails and junk faxes that tout ludicrous and fraudulent claims. Another fraudulent scheme is the sale of chop stocks in which shares acquired below market under Regulation S are illegally sold to overseas or domestic retail investors. I can’t express this enough, the fraises OFF SHORE or OVER SEAS investing are huge red flags for scam.
Now that you’ve learned a little about Penny Stocks here is a link to the U.S. Securities and Exchange Commission (SEO) for the "Penny Stock Rules" http://www.sec.gov/answers/penny.htm (if this link does not work please copy and past it in your web browser). You need to know the rules of the game before you play, right! Please if you are truly interested in penny stocks make sure you read the rules of penny stocks provided by the SEO.
Now I know that this sounds maybe some what overbearing. This was just need to know Info, the truth is, there is risk in any investment made. We gain knowledge from taking risks. Now a few questions you may be asking yourself. How do I fully know that my investments will generate an amazing pay out? How Do I gain the knowledge that I need to make inexpensive choices in Penny Stocks? Gosh, how do I avoid these scams? There is a way to overcome these hurtles. Find out how simple it really is by clicking the link below.
And remember one thing, the number one way we gain knowledge with out risking it all is learning from others who have already risked and gained the knowledge themselves.
