Investing In Penny Stocks – Where To Buy Penny Stocks Online

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Investing In Penny Stocks – Where To Buy Penny Stocks Online

How to buy penny stocks and where to buy penny stocks. Penny stocks are low-priced stocks — usually with a value of less than $5 — of small companies. A stock that trades at a relatively low price and market capitalization, usually outside of the major market exchanges. These types of stocks are generally considered to be highly speculative and high risk because of their lack of liquidity, large bid-ask spreads, small capitalization and limited following and disclosure. They will often trade over the counter through the OTCBB and pink sheets.

Ask any investor what a stock trading under $5 is and they will tell you it is a penny stock, microcap stock, or nano stock. These three terms are for the most part interchangeable. However the broader definition of a penny stock refers to a business’s aggregate value of its outstanding common shares, are more commonly known as its market capitalization rather than its stock price.

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July 04 2009 03:37 am | Penny Stock

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