What risks are there?
Learn who you can trust, and who to be cautious about. What are the biggest pitfalls and scams going around today? Are some penny stocks excellent investments?
Learn all about buying and selling. Where do I look to find the best investments? Are there high quality resources available to help me do my own research? What do I need to know to start trading and making money?
The best penny stocks
Are there ways to make sure a company is legitimate? What criteria will help me seperate the good from the bad? How do I start looking for the best opportunities?
Did You Know?
All shares that trade for less than $5 are technically considered penny stocks. True, most people think of shares at price points of less than $1 when they think of penny stocks, but the Securities and Exchange Commission, as well as most brokerage houses, use the $5 threshold.
Many trade for a few cents, some even for fractions of a penny (one tenth of a penny per share, for example). Stay away from these, you will almost certainly lose money trading them.
Other criteria are used by some to define penny stocks. For example:
Market Capitalization: If a company's total value is less than $10 million.
Their Parent Exchange: Shares trading on the OTC-BB or Pink Sheets are often painted with the "penny stocks" brush. This is not always a great way to define them, since they may be changing hands at levels of $50 per share or more.