For those who are planning to invest into stocks or those new to the market, will often ask, where do I find penny stocks? It’s usually the first question people think about when they hear how profitable penny stock trading can be.
Penny stocks are cheaper by a large margin by nature and this means you can buy a lot more for your money. These types of stocks are usually being offered by companies that are just starting out and need to raise capital. The downside is that penny stocks do not hold the same level of security as higher quality stocks so caution is advised.
However, this does not mean that penny stocks are not worth investing into. These stocks can provide huge returns on investment very quickly sometimes.
It is easy to find penny stocks if you know what they are, most people don’t even know what a penny stock is. A penny stock is usually being offered at a low price in moderate quantities. They are usually offered by companies that are not quite known in their respective industries quite yet. A penny stock will trade for $5.00 or under a share.
These stocks do not trade on the major indexes but they trade on the Over the Counter Bulletin Board (OTCBB) or the Pink Sheets.
To find good penny stocks you must investigate the background of the company that is offering the penny stock. This helps you eliminate your risk for fraud. Make sure you look at their products, their services, financial sheets, revenues, and anything you can find that would make you believe the company is worth investing into.
It is crucial that you do research on any company you want to put your money into!