When I first heard about Penny Stocks, I didn't know penny stock picking services existed. The SEC defines Penny Stocks as low-priced stocks, usually under $5. You can buy and sell penny stocks "over the counter" (OTC), from a fraction of a penny to five U.S. dollars ($0.001-$5.00). For most penny stock investors, however, the biggest problem is how to find profitable stocks under $5. You can do your own research, but most savvy stock investors subscribe to penny stock picking services for a monthly fee.
There are, of course, free penny stock picking services you can use, but as a sage once said, there is no free lunch in America. There are many good penny stock picking services out there, but the Penny Stock Egghead membership stands out as a one-time fee for life. As a member, they will put your email on their emailing list, and you will receive a weekly penny stock alert every Friday and a follow up on Sunday. Investing in stocks is a rat-race to wealth; and you need to have a good and reputable penny picking service on your side to win. Unfortunately, "pump and dump" penny stock promoters and other bad actors have tarnished the penny stock industry.
The Internet is so vast that searching for information on micro-cap stocks (penny stocks) can be overwhelming. Without prior knowledge, it can be difficult for beginners to avoid jumping on information that appears credible on its face but which actually is devious information by trashy promoters of pump and dump penny stocks. With "pump and dump" schemes, promoters of penny stock newsletter scams often claim to have insider information without offering specifics. Their objective, of course, is to have you sign up, and then to offer you stocks that you did plan to buy.
When you are looking for penny stock pickers, beware of the following:
Promoters of penny stock service who assert information that is patently untrue for the purpose of enticing you to subscribe to their pump and dump penny stocks
Stock picking services offering information they claim is "insider" news for picking micro cap stocks
Newsletters may purport to offer unbiased recommendations, or tout a company as a "hot" stock, for their own benefit.
Promoters may also post messages in chat rooms or stock message boards urging readers to buy the stock quickly.
You can understand why institutional investors usually avoid investing in penny stocks OTC when you understand the net effect of pump and dump schemes. When promoters of pump and dump penny stocks decide to sell their holdings of company penny stock whose price they helped to hype, the investors who purchased the stocks in question will be left with penny stocks that have no value.
To protect investors and the public at large from unscrupulous penny stock promoters, SEC is all out looking for pump and dump penny stock scams. According to the Washington Post, the SEC recently announced that it is redoubling its effort to combat the manipulations of "micro-cap" stocks, opening about half a dozen investigations each month into schemes suspected of bilking mom-and-pop investors. Registered companies' stocks are often classified as micro-cap or blue-chip stocks, depending on the size of a company's market capitalization.The key difference is that it is relatively easy to find information on Blue-Chip stock companies because they often file period reports with SEC.
SEC rules are intended to make sure that there is transparency and efficiency in the stock market, and that everybody plays by the same rules. However, it can be difficult for an investor to find information on penny stock companies if there are no reports made available to the public. Most experts agree that the OTC includes registered companies whose stock is not listed on the stock exchanges. Besides the SEC requirement for periodic reports, stock exchanges such as the NYSE have their own financial and market capitalization criteria for listed companies. Companies that are thinly traded or not in compliance with financial reporting requirement get delisted. It is also believed that most companies who are not listed with stock exchanges often end up on the OTC. When this happens, penny stock investors are not able to get information they would other wise get from a Blue-Chip stock company. For this reason, you need to do due diligence in dealing with thinly traded stock companies and their promoters who tout "insider" information.
The reference to micro-cap is not meant to confuse you. OTC penny stocks and Micro-cap stocks mean the same thing. Micro-cap is a term that refers to stock companies that are registered with SEC but whose stock is not listed on a major stock exchange such as the New York Stock Exchange (NYSE). Also, micro-cap stock companies include stock companies who are registered but never got listed on a stock at exchange at inception because of their size. These type of stock companies are said to be "thinly traded" because there are fewer buyers and sellers for the stock. With exception, of course, it is generally difficult to find information on micro-cap stocks, so most institutional investors avoid investing in penny stocks. In addition, because of low volumes, institutional investors are afraid of being duped by pump and dump penny stock promoters and who may manipulate stock prices. Thus, institutional investors prefer to deal in blue-chip stock companies whose periodic reports they can find and peruse to make informed investment decisions.
Unlike blue-chip companies whose stocks are listed on a national stock exchange, "over-the-counter," (OTC) is a term of art that refers to stocks bought or sold outside of a stock exchange. Moreover, micro-cap stocks are generally not listed on a national stock exchange. However, you can buy and sell them "over-the-national stock exchange.
Learn more about penny stock picking services by visiting at http://getmoneyapps.com/penny-stocks
There are, of course, free penny stock picking services you can use, but as a sage once said, there is no free lunch in America. There are many good penny stock picking services out there, but the Penny Stock Egghead membership stands out as a one-time fee for life. As a member, they will put your email on their emailing list, and you will receive a weekly penny stock alert every Friday and a follow up on Sunday. Investing in stocks is a rat-race to wealth; and you need to have a good and reputable penny picking service on your side to win. Unfortunately, "pump and dump" penny stock promoters and other bad actors have tarnished the penny stock industry.
The Internet is so vast that searching for information on micro-cap stocks (penny stocks) can be overwhelming. Without prior knowledge, it can be difficult for beginners to avoid jumping on information that appears credible on its face but which actually is devious information by trashy promoters of pump and dump penny stocks. With "pump and dump" schemes, promoters of penny stock newsletter scams often claim to have insider information without offering specifics. Their objective, of course, is to have you sign up, and then to offer you stocks that you did plan to buy.
When you are looking for penny stock pickers, beware of the following:
Promoters of penny stock service who assert information that is patently untrue for the purpose of enticing you to subscribe to their pump and dump penny stocks
Stock picking services offering information they claim is "insider" news for picking micro cap stocks
Newsletters may purport to offer unbiased recommendations, or tout a company as a "hot" stock, for their own benefit.
Promoters may also post messages in chat rooms or stock message boards urging readers to buy the stock quickly.
You can understand why institutional investors usually avoid investing in penny stocks OTC when you understand the net effect of pump and dump schemes. When promoters of pump and dump penny stocks decide to sell their holdings of company penny stock whose price they helped to hype, the investors who purchased the stocks in question will be left with penny stocks that have no value.
To protect investors and the public at large from unscrupulous penny stock promoters, SEC is all out looking for pump and dump penny stock scams. According to the Washington Post, the SEC recently announced that it is redoubling its effort to combat the manipulations of "micro-cap" stocks, opening about half a dozen investigations each month into schemes suspected of bilking mom-and-pop investors. Registered companies' stocks are often classified as micro-cap or blue-chip stocks, depending on the size of a company's market capitalization.The key difference is that it is relatively easy to find information on Blue-Chip stock companies because they often file period reports with SEC.
SEC rules are intended to make sure that there is transparency and efficiency in the stock market, and that everybody plays by the same rules. However, it can be difficult for an investor to find information on penny stock companies if there are no reports made available to the public. Most experts agree that the OTC includes registered companies whose stock is not listed on the stock exchanges. Besides the SEC requirement for periodic reports, stock exchanges such as the NYSE have their own financial and market capitalization criteria for listed companies. Companies that are thinly traded or not in compliance with financial reporting requirement get delisted. It is also believed that most companies who are not listed with stock exchanges often end up on the OTC. When this happens, penny stock investors are not able to get information they would other wise get from a Blue-Chip stock company. For this reason, you need to do due diligence in dealing with thinly traded stock companies and their promoters who tout "insider" information.
The reference to micro-cap is not meant to confuse you. OTC penny stocks and Micro-cap stocks mean the same thing. Micro-cap is a term that refers to stock companies that are registered with SEC but whose stock is not listed on a major stock exchange such as the New York Stock Exchange (NYSE). Also, micro-cap stock companies include stock companies who are registered but never got listed on a stock at exchange at inception because of their size. These type of stock companies are said to be "thinly traded" because there are fewer buyers and sellers for the stock. With exception, of course, it is generally difficult to find information on micro-cap stocks, so most institutional investors avoid investing in penny stocks. In addition, because of low volumes, institutional investors are afraid of being duped by pump and dump penny stock promoters and who may manipulate stock prices. Thus, institutional investors prefer to deal in blue-chip stock companies whose periodic reports they can find and peruse to make informed investment decisions.
Unlike blue-chip companies whose stocks are listed on a national stock exchange, "over-the-counter," (OTC) is a term of art that refers to stocks bought or sold outside of a stock exchange. Moreover, micro-cap stocks are generally not listed on a national stock exchange. However, you can buy and sell them "over-the-national stock exchange.
Learn more about penny stock picking services by visiting at http://getmoneyapps.com/penny-stocks
About the Author:
Making money by investing in penny stocks requires that you learn proven methods and used effective tools to succeed. The most difficult aspect of penny stock trading is how to find the best stocks under 5 to investing. In the ever changing economy, it is necessary that you keep abreast of what is happening in the marketplace. It is true that you can make a fortune in penny stocks if you know what you are doing. Learn how to buy penny stocks now by referring to our official website right away. Get the latest advice directly from this useful source of information at http://getmoneyapps.com/stock-picks.
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