Most stock investors, especially those who do not have big amount of money as capital, prefer to invest in penny stocks. Penny stocks, or also known s cheap stocks or nano stocks, are those stocks that are sold at less than $5 per share. Thus, owning plenty of shares becomes possibly for most stock investors, because they do not need to have big capital for such. However, penny stocks are believed to be much riskier to invest into, as these stocks are not sold in major stock markets just like to regular stocks. Most of the time, penny stocks are listed in over-the-counter markets and pink sheet markets. And because the stocks that are listed in pink sheet markets do not need to file their financial reports with Securities and Exchange Commission (SEC), they are rather riskier to buy.
How to buy penny stocks?
Most of us are wondering how to buy penny stocks. Buying penny stocks is more or less the same as buying stocks from the regular stock market. We will need to hire a stock broker who will help us process the purchase transaction. Moreover, there are some brokers who also offer financial and investing advice and stock buying guide for those individuals who do not know how to buy stocks properly. Continue Reading →