A Novice's Guide to Penny Stocks

Penny stocks are low priced and highly speculative stocks that are very risky. They are generally issued by start-up companies with little track record in revenues and earnings. This type of stocks is very popular among small speculators because of its low prices and high earning potentials.

Most penny stocks are not traded on the stock exchange market such as the American Stock Exchange, the NASDAQ or the New York Stock Exchange, but they are traded in the over-the-counter (OTC) market. If you are interested in trading penny stock, you should find a reliable online broker who is willing to execute penny stock orders. Be sure to check the trading fees and minimum account balance requirement before opening up an online trading account.

View below for more information:

How to Buy Penny Stocks
You can purchase penny stocks via a full service brokerage or using a discount brokerage account. Full service brokerages are typically more expensive...

5 Reasons to Buy Penny Stocks
It does not require a large initial capital investment, meaning that you can buy more shares with little money invested...

How to Find Good Penny Stocks to Invest In
First you should look into the company's financial position and performance, its share structure, operations, growth prospects...

Advantages and Disadvantages of Penny Stocks
Investing in penny shares is the easiest way to make money in a short period of time. It does not require a large initial investment...
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