Tips For Trading Of Penny Stocks

By Garry Wittgenstein

The trading of the regular stocks is normally happens at the various stock exchanges, however penny stocks trading sometimes happens outside the state stock exchanges like NYSE and Naz . Generally penny stocks are traded in over the counter market or OTCBB and pink sheets and some of the shares are available for dimes. 1 or 2 penny stocks has a large potential to get to the better levels and even competes the regular stocks, however there's a need to properly identify these stocks. Smaller corporations whose market capital structure is below 5,000,000 offer the penny stocks and as fast as the company grows, there's a sudden rise in the penny stock costs.

Share markets : The major stock exchanges include the NYSE, Naz , OTCBB and pink sheets. Penny stocks are usually traded at OTCBB and pink sheets, however as specified by the rules of SEC penny stocks can be traded in all of the exchanges.

There are a number of minimum prerequisites for listing of shares by the corporations at NYSE and Naz . There's only 1 duty for trading of penny stocks at OTCBB and that's the company should stay current in SEC filing. There isn't any place for a penny stock quotation if the stock doesn't meet the minimum standards set by different stock exchanges or OTCBB. Infrequently the penny stocks already being quoted at OTCBB, don't meet the SEC obligation will be permitted a specific period for finishing the rituals and if the corporations don't meet the mandatory condition even after a thirty or sixty period of grace time, the penny stocks will be removed from their listing.

Pink sheets play a major role in over the counter trading. State Quotation Bureau or NQB provides this service. In precise the NQB prints the main points of share costs and other info on pink sheets, as it is complicated to get the costs of these shares otherwise. Much of the time brokers get the price and other info on penny stocks from market makers and supply it to the purchasers. In the present's Web time, you will find the important points of penny stocks merely a click away at the site of pink sheet. A company has to meet the minimum requirement of pink sheet for listing and citing of the share at pink sheets.

Corporations wish to list the shares at NYSE, as it is highly preferred stock exchange. The next preference is given to Naz and then comes the NASDAQSC. Naz in contemporary past has become more preferred and firms who've listed their stock at NYSE are also interested to list the stocks in NASDAQ. The last preferences are OTCBB and Pink Sheets.

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