If you are looking into buying penny stocks you are probably still a little confused as to what they are exactly. This confusion however is not easily solved for the simple reason that there is no set definition as to what they are.
Some define penny stocks as stock that is priced at lower than $1, others at anything under $5. Also some include the entire over the counter market ( OTC ) whereas others only stock traded on the pink sheets.
If we go by the Securities division penny stocks are stocks that trade on the pink sheets or on the NASDAQ and are lower than $5. Penny Stocks will also only trade in the OTC markets and not on the stock market.
New investors find penny stocks appealing because of the low price and potential for rapid growth which may be as high as several hundred percent in a few days. However it should also be noted that severe losses can also occur and for this reason penny stocks are listed as an high risks investment by the SEC.
Anyone looking into buying penny stocks should therefore obtain training before risking any actual money as with the right training the risks involved are lowered dramatically.
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Penny Stock Dream is not your usual penny stock picking website. We are a team of analysts and investors in the field of selecting penny stock picks. We have gotten used to seperating the ordinary from the extraordinary when it comes to the stock market, especially when it comes to researching and reviewing penny stocks trading on the OTC Market and Pink-Sheets exchanges.
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