About penny stocks.Q What do you think about penny stocks Inexpensive issues of stock, typically selling at less than $1 a share, in companies that often are newly formed or involved in highly speculative ventures. Penny stocks are usually available for sale over-the-counter, that is, among brokers and customers themselves, as ? And what is a good discount broker to go with? --A. Barnes Via the Internet Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the A Penny stocks are often small, early-stage, unknown companies whose stocks trade at less than $1 per share. Many people put stocks trading for less than $5 per share in this category as well. They are among the most risky investments in the stock market because: (1) finding reliable research for these companies can be difficult, (2) many Wall Street analysts don't cover them, and (3) they often have unproven unproven Dubious, nonscientific, not proven, quack, questionable, unscientific adjective Relating to that which has not been validated by reproducible experiments or other scientific methods for determining effect or efficacy track records. Anyone investing in penny stocks should only invest money they are prepared to lose--they are that risky. But you can reap a reward for that risk. Buying a high volume of penny shares at their low price can allow you to get in on the growth of new companies on the ground floor, when their share price is affordable. The challenge is to pick companies that will grow over the next 20 years. The Over-the-Counter Bulletin Board (OTCBB OTCBB See OTC Bulletin Board (OTCBB). ) Website (www.otcbb.com) and www.allpennystocks.com can help. The OTCBB operates similarly to the Nasdaq exchange, regulating these small, early-stage companies. Its Website offers investor information, market statistics, and company profiles for research purposes. The AllPennyStocks site offers lists of penny stocks for you to research and also gives information on why certain companies deserve attention. As for low-cost brokers, my choices are ShareBuilder (www.sharebuilder.com) for its low per-trade cost, ease-of-use, and stock research; and Scottrade (www.scottrade.com) for having 189 branches to give you access to real people and top-notch customer service. Mail your money management questions to Ask B.E., BLACK ENTERPRISE, 130 Fifth Ave AVE Avenue AVE Average AVE Alta Velocidad Espanola (train between Madrid and Seville) AVE Alta Velocidad Española (Spanish: High Speed Train) AVE Audio Video Entertainment AVE Advertising Value Equivalent ., New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of , NY 10011, or send an e-mail to scottm@blackenterprise.com. |
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