Frequently Asked Questions about Penny Stocks
If you have a question not listed here, you should email us! One of our outstanding customer service representatives will be more than happy to help.
1. What are Penny Stocks?
The Securities and Exchange Commission classifies penny stocks as “low-priced (below $5), speculative securities of very small companies”, and they are traded over the counter (OTC) through quotation services such as the Pink Sheets or the OTC Bulletin Board.
2. Where can I buy Penny Stocks?
Online brokerage firms such as Scottrade®, E-Trade®, TD Ameritrade®, and Speedtrader® will allow you to purchase penny stocks.
3. Why should I invest in Penny Stocks?
Penny Stocks are, in most cases, overlooked by traditional stock brokers who do not follow a specific stock unless it is trading above a predetermined limit (typically around $2.00 – $3.00). Penny Stocks can be securities of small companies with big potential for growth and can, therefore, pay premium returns to those who buy in before the price rises.
4. How do I find good quality Penny Stocks to invest in?
Start by joining our FREE email list to receive alerts on the hottest OTCBB and AMEX companies. Do your own due diligence on the company we alert you to and make sure you understand the company’s business and its products or services. Read the company’s press releases, reports and financial statements. Consult your registered stockbroker and financial advisor.
5. How safe is my money in these stocks?
All investments involve risk and you should always consult with your registered investment advisor or stockbroker when considering investment opportunities. While considered more speculative than other investments, penny stocks also provide the opportunity for substantial returns.
6. What kind of Penny Stocks will you alert me to?
We alert our subscribers to penny stock companies, listed on the OTCBB and AMEX, that we believe have both short- and long-term potential. Some of the things we look for in companies are: an experienced and proven management team, products and/or services with great potential, growth sector, existing clients or contracts, proven track record and more… (Note: We typically do not release picks on pink sheet companies due to the lack of readily available information.)
7. Are you compensated for issuing alerts?
We are at times compensated for alerting our members to a certain company. However, we turn down the majority of the companies that approach us and we will only accept compensation from a company that we have researched and believe will provide our members with substantial opportunities for both short-and long-term gains. If we do accept compensation for an alert, as required by the SEC (Securities and Exchange Commission), we will disclose who paid us, the amount, and the type of payment in our email and website disclaimer.