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Article Details
Article Details
A Penny Stock for Your Thoughts |
| Date Added: May 21, 2009 06:36:13 AM |
| Author: Staff Writer |
| Category: Business & Economy: Finance and Investment: Stocks and Shares |
| Any stock that trades at under $5.00 per share is defined as a penny stock by the Securities and Exchange Commission (SEC). Many trade at under one dollar, but they're all known as penny stocks because they trade a very low price. In the United Kingdom these stocks are called penny shares. You may have heard how some major companies, like Microsoft and Xerox, started out as penny stocks. You may have also heard some scary stories about unethical penny stock scams. Before you begin investing in penny stocks, it’s a good idea to get an education. Many investors with a small to medium budget are drawn to penny stocks because of the low price and the chance to turn their small investment into big cash. These investors should remember that what goes up can also come down. Severe loss can also occur and penny stocks can lose all of their value. The penny stock market is extremely volatile, in other words, the stock price can fluctuate wildly. Obviously, investing in penny stocks is cheaper than buying regular stocks but, as with any investment, you must still invest wisely. Analyzing stock patterns is one way to chart the history of a stock. Getting an education and spending some time doing research is an excellent way to begin your penny stock instruction process. The Securities and Exchange Commission ensures that the securities markets operate in a fair manner and protect against fraud, but you still must choose your stocks carefully. You will need reliable information to make those picks. Subscribing to a reputable and free penny stock newsletter is how many novice investors begin. You must be careful to select a newsletter that is reputable and selective about the companies that they pick. Choose a newsletter that picks only solid publicly traded companies that seem to be undervalued as a possible investment idea. A free and easy way to begin is with a newsletter like the one created by Royal Penny Stocks. They label their carefully selected penny stock picks like playing cards in a deck. You’ll get notices about stocks they consider Kings or Queens and occasionally you’ll get dealt an Ace – their name for a very special pick. You’ll find stock quotes and real time market news on their website too. Just like in cards, you should know when to hold them and know when to fold them. You can check out the free newsletter and subscribe at www.royalpennystocks.com. |
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Alexa Rank