Penny Stock Research Papers

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Firstly, what are Penny Stocks? Cheap priced, micro cap stocks are called as penny stocks. As the name specifies, penny cost hardly ever cost a penny. According to SEC, penny stocks are anything which comes under $5. Many investors don’t think of these penny stocks as there are some $5 stocks which are trading on bog exchanges.
Many individual investors look at penny stocks like Wall Street’s Wild West, which is a natural world of investing but lately separated from media coverage that come up with stocks that are trades on big exchanges. Gaining and loosing is a part of penny stock world.
Penny stocks are also full of drama – just because they are not discussed by media, people don’t know them.
Here the question arises, how and where to buy penny stocks? It can be purchased from your normal stockbroker – it doesn’t have to do it with listing of stocks in big exchanges. …show more content…

But the listing requirement is strict and they are more reliable than that of other penny stocks. OTCBB and Pink sheets are one of the listing services that trade penny stocks. OTCBB has little bit of added authority as it maintains listing requirements. And on other hand Pink Sheets provides quotation on stocks that are registered with it and it is not registered with SEC like OTCBB. In comparison, Pink Sheets are bit risky.
The potential payoff of Penny Stocks
As the risk is involved, why would anybody will to invest in penny stocks? The answer for this is unpredictable. Many people have a belief that they might be lucky that their stocks will jump from $0.10 to $10 in two-three weeks. Only trick is to find the right stock.
Risk in Penny

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