Common stocks costing under $5 per share are more informally known as penny stocks. Obviously you can't buy anything for a penny any more, even stock, but $5 a share sounds like a good investment. Still, it's risky, because penny stocks are most often sold by new companies needing capital. Read on to learn how to invest in penny stocks.
Step1 Find out as much as you can about penny stocks. While there have been cases of people earning good money quickly, more often investors lose their money.
Step2 Contact a broker who specializes in penny stocks. Carefully research a brokerage that specializes in penny stocks, and in particular a broker who tells you that you're getting a sure thing.
Step3 Subscribe to online subscription services as an alternative to using a broker. Either a broker or an online service should provide you with a list of available penny stocks.
Step4 Familiarize yourself with the companies offering penny stocks. You want to invest in companies that have good leadership and a potentially successful product.
Step5 Understand that penny stocks are traded over-the-counter, not on a stock exchange. Brokers receive commissions based on the transaction.
Step6 Think about investing in a penny stock still listed on Nasdaq. You might determine it's worth the risk after more investigation. If you learn that a stock has been de-listed and is now being traded over-the-counter, chances are that the company is experiencing significant financial trouble.
May 31, 2008
May 28, 2008
BUYING SHARES
You need to know about the basis philosophy of buying stock. What are the highs and lows of the fund. How long should you ask for the history of the stock you plan to buy. You can ask a broker for the past history of the stock on a print out form. It may take a few days or you can get the print out right away the same day. It depends on the equipment in the office. If it is a branch office or a small investment person. If you plan to purchase from them, have them go over the history of the stock with you.
GETTING STARTED:
You can go on line on the computer and get the latest listed price of the stock. If you are not well versed on the purchase of the stock, you may want to talk to a broker. Ask for the performance of the stock for the last year. Ask for a print out for the stock for the last 10 years, if possible.
Step2 Decide what kind of stock you may want to purchase. If you want to purchase the utilities, or gas, or something similar, you can count on the returns. But the price is not usually fluctuating very much each day, or year. They are highly regulated and will not change that much. They are usually the best to buy for the return on your money.
Step3 If you are looking for rapid growth, then you want to check out the newly formed companies. It depends on what they are manufacturing, as to what they will be selling for in the start up. Keep in mind that when they start up, their price will be low. After the consumer buys the product the price will be going up.
Step4 There are stocks that have increased up to 400% during the years. They are high risk stock. If you have money to lose, then you can take a chance on them. If you don't have a lot of money to lose, you should try sticking to the past proven stock. There is not a lot of money to be made, but the risk is a lot less.
GETTING STARTED:
You can go on line on the computer and get the latest listed price of the stock. If you are not well versed on the purchase of the stock, you may want to talk to a broker. Ask for the performance of the stock for the last year. Ask for a print out for the stock for the last 10 years, if possible.
Step2 Decide what kind of stock you may want to purchase. If you want to purchase the utilities, or gas, or something similar, you can count on the returns. But the price is not usually fluctuating very much each day, or year. They are highly regulated and will not change that much. They are usually the best to buy for the return on your money.
Step3 If you are looking for rapid growth, then you want to check out the newly formed companies. It depends on what they are manufacturing, as to what they will be selling for in the start up. Keep in mind that when they start up, their price will be low. After the consumer buys the product the price will be going up.
Step4 There are stocks that have increased up to 400% during the years. They are high risk stock. If you have money to lose, then you can take a chance on them. If you don't have a lot of money to lose, you should try sticking to the past proven stock. There is not a lot of money to be made, but the risk is a lot less.
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