| A penny stock is an exciting, risk filled and potentially
rewarding investment. The definition of a penny stock is a stock
that trades from a fraction of a penny to $4.99. Small companies
to finance their aggressive growth plans typically issue these
penny stocks. With these small priced stocks, there are many
risks since a lot of these companies are in their initial stages
of their building their businesses. By finding the right penny
stock, the return on investment could be potentially many times
over.
To buy a company’s penny stock, you need to have a
trading account with a stockbroker, be it a discount broker
or a full service broker. There are several markets where
these penny stocks trade: NASDQ Small Market Cap, American
Stock Exchange (AMEX), Canadian Markets, Over The Counter
Bulletin Board (OTC-BB), Over The Counter (OTC) and Pink Sheets.
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