PENNY STOCKS-TRADE MARKETS
Friday, November 27th, 2009There are markets and more markets for trading stocks. Despite the fact that there is a variety of markets, all of them may not be suitable for investors or investing penny stocks.
The gradation varies between very well to very bad or dangerous when it comes to investing these stocks.
THE NASDAQ SMALL CAP
Here penny stocks and investors are both found aplenty, apparently because of the safety involved.
If a company is listed here, it is supposed to adhere very stringently to the rules and regulations of Nasdaq small cap.
The whole process is so designed as to keep the investors safe and protect their interests and their penny stocks too.
Additionally, it is extensively covered by the print, visual and the electronic media, making communication of current happenings easier and hence keeps the investor updated about the market condition.
No company is allowed to trade below $1 here, and if at all any company does so, it is forcibly shifted to the OTC-BB market.
Mostly trading here is quite a smooth affair, as brokers also never have any difficulty in trading here and there are no additional commissions too.
OTC-BB (OVER THE COUNTER-BULLETIN BOARD)
Stocks not belonging to NSE or Nasdaq small cap will be found here. It acts more like a shelter for those not listed elsewhere.
It maintains a systematic discipline and helps in maintaining the liability of the stocks traded here.
AMEX
It comes with most of the benefits of Nasdaq small cap and brokers also do not find any hassle in trading here.
DIRECT FROM THE COMPANY
Some investors prefer to buy shares directly from the company, but usually they sell it at a higher rate when compared to the exchanges.
CANADIAN EXCHANGES
Toronto stock exchange and Canadian venture exchange list low value penny stocks.
