Introduction to Investing

What are Penny stocks

What Are penny stocks?
href="http://www.dailywallstreet.com/pennystock.php">pennystocks?
penny stocks or
href="http://www.dailywallstreet.com/pennystock.php">pennystocks are shares that trade from .001 of a penny to $5.00.

They currently trade in decimals.
They are much more risky than other investments, but have tremendous reward potential. Some
href="http://www.dailywallstreet.com/pennystock.php">penny stocks have gone from 25 cents to $20.00, while others have

become worthless.
In the past, penny stocks or
href="http://www.dailywallstreet.com/pennystock.php">pennystocks had a bad name because of risk and lack of information

about the companies and the fact that the spread between the bid and the ask were sometimes more than 50%... In addition
href="http://www.dailywallstreet.com/pennystock.php">penny stocks were considered to be easily manipulated.
Nowadays, investors are quickly learning that penny stocks

represent all the small companies across America that are great and have yet to grow or be discovered. The SEC keeps a

close eye on manipulation practices and prosecutes those who break the laws.
Many investors like penny stocks because it does not take

significant cash to get started, and one can own a portion of a good company and live the American dream.

To answer the Question, "What are penny stocks"?
href="http://www.dailywallstreet.com/pennystock.php">penny stocks, or hot
href="http://www.dailywallstreet.com/pennystock.php">pennystocks.

The upside of penny stocks, is the ability to turn a small

investment into a fortune.
The downside is the risk, volatility of the shares, and the lack of corporate transparency.
We advise anyone interested in penny stocks,
href="http://www.dailywallstreet.com/pennystock.php">pennystocks to do their Homework on the company.
With penny stocks, or
href="http://www.dailywallstreet.com/pennystock.php">pennystocks one needs to all aspects of the companies business.
Management is KEY. I have seen management squander money self seeking items rather than what’s best for the company and

shareholders.
You also should look for the following things, among others, to ensure that you are only getting involved with the absolute

best penny stocks.

· Market Liquidity (this will make it easier buy and sell.

· Are the shares good if they trade on the pinksheets or pink sheets, OTC.BB or otc bb, or Grey Market? Grey Market has no

information is like throwing money away or at least that’s what the regulators are suggesting. We take that point of view

as well. Since pinksheets.com , the pinksheet stocks have much more information available and because of pink link the

electronic trading platform now available to Market Makers and pinksheet traders, the spreads have tightened. The OTC

Bulletin board is like the old Nasdaq small cap.

The NASDAQ Small Cap or AMEX, they will have to report to shareholders regularly, and must adhere to strict requirements of

the exchange. OTC-BB and Pink Sheet stocks are generally less transparent or cooperative)

· Strong business plan and results (Check the financials to see if they are making more money than they are spending and if

their operational plan makes sense)

· Look for a trend of improvement (Share prices go up the most when a company has momentum. If they keep making more money

each year than they did the last, the shares will probably benefit as the company grows.)

· Lean heavily on the opinions of professionals (When a a newsletter or service reviews a company, and analyses all the

details, it is a good starting point for you to read that report and decide if the company fits with your trading goals.)

Our goal is to find the best penny stock list