FAP Turbo

Make Over 90% Winning Trades Now!

Monday, July 20, 2009

Penny Stocks Market

By Marco Davies

Penny stocks are ordinarily offered up by a concern that has been established for less than three years and has not greater than 5 million dollars in solid assets, or a business that has at the very least three years of operation, and has not more than two million dollars in tangible assets or a company has 6 million dollars tax revenue for three years. There's a fully fledged market place for the penny stocks, yet these stocks have very specific liquidity. This is just one of the reasons for the penny stock market's unpredictability, nevertheless these marketplaces stay very popular.

Penny stocks, are sometimes also referred to as as micro-cap, are low priced stocks and shares ordinarily bought and sold in the over the counter market. Almost all of the stocks or shares are for sale for a penny that is why these are referred to as penny stocks.

OTCBB: Over The Counter Bulletin Board furnishes complete information for more than three thousand stocks including as they happen, quotations display, last sale price and volumes. These stocks are ordinarily not dealt with in any of the national stock exchanges. The OTCBB digitally furnishes as it occurs quotations for home as well as international stocks and shares, plus it displays previous days dealing processes in DPPs. There are in excess of two hundred market makers are documented at the Over The Counter Bulletin Board with OTC bulletin boards preferred to pink sheets.

Pink Sheets: The Pink sheets is published and sustained by Pink Sheets LLC and it shows bid and requested quotation costs of different penny stocks. Concerns listed in pink sheets are the most risky as most of the businesses simply meet the minimal prerequisite for listing, although penny stocks at pink sheets are lightly bought and sold. A good many businesses pay dealers] for dealing these penny stocks and therefore some traders|agents] use deceptive activities to sell the stocks and obtain money from people.

In a number of the instances, just a couple of market makers are actively involved in a specified penny stocks and obtain and sell these specific securities only. Dealing with a market maker is preferable, as the market maker not only sells the specific stocks but it in addition buys the shares. Close to two hundred and thirty market makers are approved by the Over The Counter Bulletin Board and these market makers buy and trade stocks on a frequent basis. It is also preferable to observe that a larger number of market makers are accessible for specified stocks because the less market makers there are available, will often determine or control the particular stocks. In these instances the investment funds in the unique penny stock is risky as these few market makers can manipulate the costs of the shares and thus can maintain a wide spread between the sale and buying terms of the stock. Not too long ago a few of the market makers were found to be engaged in deceptive activities.

There is a seasoned market of penny stocks that are bought and sold at Over The Counter Bulletin Board and pink sheets. Over The Counter Bulletin Board is governed by the rules of the SEC of the U.S.. - 23223

About the Author:

0 Comments:

Post a Comment

Subscribe to Post Comments [Atom]

<< Home