Deprecated: mysql_connect(): The mysql extension is deprecated and will be removed in the future: use mysqli or PDO instead in /home/a26f9f83/public_html/articles/includes/config.php on line 159
A Penny for Your Stocks > NetSparsh - Viral Content you Love & Share

A Penny for Your Stocks

According to Investopedia Inc. the penny stock market has seen phenomenal growth this past decade. From '94 to '03, the Over-the-Counter Bulletin Board trading volume increased an astounding 8900%, equaling a total of 63% of the NASDAQ and 78& of the NYSE share volumes. Many an investor has succumbed to their siren song.

It isn't hard to see why. Penny stocks are usually traded in lots of 1,000 and, as the name suggests, are bought (and sold) at incredibly low prices. There is no official price cut-off, and differences of opinion range from shares trading under $1.00 all the way up to $5.00. Others distinguish according to the market that they are traded on (the OTCBB, OTC or "Pink Sheets" for example). Yet others designate stocks as penny stocks based upon their market capitalization, or the value of each stock multiplied by the total number of outstanding shares. Regardless of the specifics, a general rule applies to all penny stocks ? they are a very high risk investment. Inversely, there's also the potential for staggering rewards.

But for every pot of gold at the end of the rainbow, there are thousands of cliffs and pitfalls along the way. The risks and dangers of penny stocks are many. In the stock exchange, there is a "best price" priority given to orders of a higher price than yours if you're buying or a lower price if you're selling. Combining this priority with what is very often low volume trading means there will be times when you find that your orders cannot be filled. In addition, there will be instances where you will have to settle for partial order fulfillment. And these are just dangers faced when your stock is performing well.

Penny stocks come from companies that are often less than credible, and unlike some of their more expensive cousins, can find themselves swayed by the power of rumors. Press releases, news stories, widespread whispers and even online forums and chat-rooms can be responsible for dramatically influencing their performance. This volatility creates two considerable challenges: 1) a high potential for schemes and scam artists; and 2) the inability to use traditional stock charting methods with any real effectiveness. It goes without saying that this isn't a market for the faint of heart.

Jennifer Gibbs is a successful freelance writer who lives in South Georgia with her husband and son. Be sure to check out her website for more great content, or to request a bid for your writing needs. http://www.JenniferGibbs.com

In The News:

This RSS feed URL is deprecated, please update. New URLs can be found in the footers at https://news.google.com/news

Index Funds Are Great, But Don't Ignore Stock-Picking | Money
Money Magazine
Index funds are for retirement. But I still crave the thrill of the hunt when it comes to investing. That means stock-picking.

and more »

Economic Times

Top 20 stocks that mutual funds bought in October; do you own any?
Economic Times
According to the Association of Mutual Funds in India (Amfi) data, equity funds received an inflow of Rs 2.86 lakh crore from November 2016 to October 2017. Prior to that, these funds had registered flows of Rs 1.5 lakh crore between October 2016 and ...

and more »

Zacks.com

3 Best Non-US Mutual Funds for Marvelous Returns
Zacks.com
American Funds EuroPacific Growth Fund F-2 (AEPFX - Free Report) seeks appreciation of capital for the long run. AEPFX invests the lion's share of its assets in common stocks with growth potential issued by companies based in Europe and the Pacific ...


PotNetwork (press release)

Cannabis Stock Report: Aurora Goes Hostile, Maricann Goes Gold, Mutual Funds Go Empty
PotNetwork (press release)
CanniMed Therapeutics Inc. (TSX:CMED) rejected a merger offer from Aurora Cannabis Inc. (TSX:ACB) The move set in motion a planned hostile takeover of the Canadian cannabis company. It follows CanniMed's announcement of the acquisition of ...

and more »

The Motley Fool: Stocks versus mutual funds
Chron.com
(If you invest in mutual funds, favor those with low fees and talented managers, or just stick with low-fee index funds such as one that tracks the S&P 500.) Carefully selected individual stocks, meanwhile, can deliver bigger returns than most mutual ...


CNBC

Senate plan lets mutual funds skip a tax change that hurts individual ...
CNBC
The Senate has decided a provision preventing individual investors from minimizing taxes will not apply to mutual funds.

and more »

CNBC

Jack Bogle's 5 bold investment predictions for 2018 and beyond
CNBC
If you are looking for easy answers or reassuring platitudes, do not check in with Jack Bogle, the 88-year-old founder and retired CEO of the world's largest mutual fund company, Vanguard, which manages $4.5 trillion in assets. "I seek the truth," he ...

and more »

Investorplace.com

The 10 Best Mutual Funds to Buy for 2018
Investorplace.com
A solid portfolio of mutual funds begins with a core holding, and the best fund to do the job in 2018 is the Vanguard 500 Index Fund (MUTF:VFINX). Although its close relative, Vanguard Total Stock Market Index (MUTF:VTSMX), is the largest stock mutual ...

and more »

CNBC

Senate tax bill ends this stock sale strategy
CNBC
A controversial proposal in the Senate tax bill could put individual investors on the hook for a bigger tax bill when selling investments. The proposed change, which originally would have hit both individual investors and mutual funds, sparked a ...

and more »

Can Mutual Funds Own Stocks Under $5?
Motley Fool
It's often said that mutual funds and other institutional investors can't own stocks that trade for less than $5, condemning low-priced stocks to retail ownership only. But the truth is actually the opposite -- there are some roadblocks for investing ...

and more »
Google News

Pamplona, the Wild Investment Bulls

You remember (they show it on TV every year) the... Read More

Stock Market Investing Odds

The greatest stock market myth is the idea that investing... Read More

Some Good News for A Change

Before we get into all the good news out there,... Read More

The Three Little Pigs Went to the Stock Market

Three little pigs went to the market to stock up... Read More

KISS Formula

There are formulas for just about everything, but it has... Read More

Two for the Money

Look back over the years and try to remember how... Read More

True Investment Road Maps

If you don't know where you are going any road... Read More

Municipal Bonds

Because there are so many stocks that are NOT paying... Read More

Valuation

Every day I hear from the "experts" on CNBC-TV and... Read More

How to Short Stocks? How to Make Money when Your Stocks Go Down by Shorting

The stock market can present you with a lot of... Read More

Investing in the Stock Market

From the book 'The Stockopoly Plan' by the author Charles... Read More

A Penny for Your Stocks

According to Investopedia Inc. the penny stock market has seen... Read More

Financial Crime

Congress recently passed another new law that is supposed to... Read More

Mutual Funds: The Modern Den of Thieves!

Mutual funds were created with the idea that one person... Read More

Dividends

When is a dividend not a dividend?The latest thing "conservative"... Read More

Do You Know What is the Single MOST Critical Mistake in Trading the Stock Market??

Well maybe that's overstating it a little, but it's certainly... Read More

Selling Strategies - Setting a Stop Loss

Sometimes the best way of lowering exposure to risk is... Read More

Why Stock Is More Risky Than Options!

You probably have been told that options are risky. Even... Read More

12 Basic Stock Investing Rules Every Successful Investor Should Follow

There are many important things you need to know to... Read More

Jack and Jill

Jack and Jill went up the hill to fetch a... Read More

Good News?

As the man said, "I've got some good news and... Read More

3 Components Needed for Beating the Market

Time to look back2004 is over, now we are in... Read More

VIX

No, this is not a symbol for some Latin number.... Read More

The Next Bull Market

We are already in it, but you can't see it.... Read More

Race Horses and Mutual Funds

For years investors have been taught to look into the... Read More