Penny stocks are securities generally issued by small, publicly traded companies and usually trade at a price of less than $5, according to the U.S. Securities and Exchange Commission. The low price and high volatility of penny stocks makes them highly speculative investments that carry significant
Penny stocks work just like regular stocks, with the main difference being that investors buy and sell penny stocks in over-the-counter bulletin boards (OTCBB) or the pink sheets. The term "penny stocks" refer to stocks that are worth no more than $5 per share, according to the Securities and Exchan
Lake Shore Gold Corp (LSG), Castle Brands, Inc. (ROX), Empire Resorts, Inc. (NYNY) and Orexigen Therapeutics (OREX) have all been noted as good penny stocks for 2015, as reported by InvestorPlace. These stocks are all said to offer good potential investment return for a low price, though actual mark
To find a penny stock, a consumer must visit one of the eligible penny stock brokerages, such as the OTC Bulletin Board or OTC Link LLC. Search for the desired stock, and abide by the government regulations that pertain to this type of stock.
The easiest way to purchase penny stocks is to open a brokerage account and use the broker to purchase the stock for you, according to finance site Money Morning. A broker can also help you to avoid many of the scams and frauds present in the penny stock market.
Investors interested in trading penny stocks must use caution when picking stocks and seek to invest in reputable stocks that are already profitable, recommends Market Watch. High-volume stocks are safer to trade than lower volume stocks, and investors should never trade above 10 percent of daily vo
To invest in penny stocks, find a broker, open an account and choose the stocks you want to invest in. Because of the volatility of penny stocks and the difficulty of obtaining accurate information about them, the NASDAQ OMX Group recommends conducting extensive research before taking each step.
As of June 29, 2015, some top performing penny stocks are Exelixis Inc., Vringo Inc., and Cowen Group Inc. All three stocks are listed on the New York Stock Exchange, according to Nasdaq.com.
A person can start trading penny stocks by selling fast, not shorting and finding stocks that are over 50 cents a share, according to MarketWatch. Beginners can find penny stock listings on NASDAQ or the New York Stock Exchange to get started, claims For Dummies.
When picking penny stocks, investors should evaluate a company's state in respect to dilution, the share price and valuation as depicted in outstanding shares, and the economic sector the company operates in, notes Investopedia. Investors should look deep into a company's fundamentals before trading