I?m new to investing. I have a sharebuilder account. There are stocks I?ve been interested in but been unable to purchase because they are not offered from ShareBuilder. Specifically, NJMC and LLBO.
How can I invest in the penny stocks that aren?t offered by my broker?
Best answers:
Answer by euroman71
Don?t invest in penny stocks, that?s a waste of money. The chance of you hitting it big with a penny stock is the same as hitting a jackpot in a lottery. Invest in stocks of solid companies like Johnson&Johnson, CVS, Microsoft, Ebay, Google?
Make sure to diversify as well. You can use online broker like Scottrade.com or Etrade.com, etc? They give you lots of tools to do research and pick stocks that match your criteria and investment goals.
Good luck
asked by:
I?m looking to make good gains through investing in penny stocks.
Anyone?
Best answers:
Answer by Jerry
Penny stocks are far riskier than other stocks. They are completely inappropriate for the novice investor.
The following information is directly from the SEC (Securities and Exchange Commission) website. If you do not fully understand all of these risks, avoid penny stocks.
?How Are Microcap Stocks Different From Other Stocks?
Lack of Public Information
The biggest difference between a microcap stock and other stocks is the amount of reliable, publicly available information about the company. Larger public companies file reports with the SEC that any investor can get for free from the SEC?s website. Professional stock analysts regularly research and write about larger public companies, and it?s easy to find their stock prices in the newspaper. In contrast, information about microcap companies can be extremely difficult to find, making them more vulnerable to investment fraud schemes.
No Minimum Listing Standards
Companies that trade their stocks on major exchanges and in the Nasdaq Stock Market must meet minimum listing standards. For example, they must have minimum amounts of net assets and minimum numbers of shareholders. In contrast, companies on the OTCBB or the Pink Sheets do not have to meet any minimum standards.
Risk
While all investments involve risk, microcap stocks are among the most risky. Many microcap companies tend to be new and have no proven track record. Some of these companies have no assets or operations. Others have products and services that are still in development or have yet to be tested in the market. Another risk that pertains to microcap stocks involves the low volumes of trades. Because microcap stocks trade in low volumes, any size of trade can have a large percentage impact on the price of the stock.?
The SEC document also includes a section on frauds in small stocks including:
- E-Mail spam
- Internet fraud
- Paid promoters
- ?Boiler Rooms? and cold calling
- Questionable Press Releases
- ?Pump and Dump? schemes
asked by:
josef stalin kourtney and kim take new york anne hathaway nathan hale kohls coupons joe kapp joe kapp
No comments:
Post a Comment
Note: Only a member of this blog may post a comment.