Nasdaq Penny Stocks And Micro-Caps: What You Need To Know
By Louis Zhang
When an investor is wanting to involve themselves in the stock market, they need to understand that companies are not just born, they are made. They have to work their way to the top just like every other company has. Investors sometimes think that investing in Nasdaq Penny Stocks, will find them the next big fortune maker but this is not the way to think.
Nasdaq Penny Stocks and Micro-cap stocks are stocks used on the Nasdaq that are interchangeable. The Nasdaq Penny Stocks are stocks that are considered to be five dollars or less, some think they are three dollars or less, and others classify them as under a dollar. There are some that even classify them as not being on the major market sheet.
The main thing that any investor needs to know about the Nasdaq Penny Stocks or the Micro-cap stocks is that these stocks are much riskier then the regular stocks. There are four major issues that an investor must think about when buying these Nasdaq Penny Stocks and Micro-cap stocks.
The first is the lack of information to the public. This mainly pertains to the Micro-cap stocks and not the Nasdaq Penny Stocks because these stocks are usually found on the pink sheets where the companies do not have to file with the SEC so they don't have to publicly give out the information about their company.
The next is there are no minimum standards. If the Nasdaq Penny Stocks cannot hold their own on the major market exchange, then they have to move to one of the other exchanges. On these exchanges, there is no minimum standard requirements in order to stay on the exchange.
The next is lack of history. This also applies to the Micro-cap stocks and not mainly to the Nasdaq Penny Stocks. The Micro-cap stocks are usually from companies that are fairly new or are companies that are approaching bankruptcy and do not have a good history of strength.
And the last issue is liquidity. If the Nasdaq Penny Stocks do not have much liquidity, then the stock may not be able to be sold. Liquidity refers to the volume that the Nasdaq Penny Stocks have or the amount of activity and money flow that the stock has. Source: Buypennystocksinc dot com
About the author
Get free information about day trading penny stocks and how to make penny stock fortunes at Buypennystocksinc dot com from http://www.FreeArticlesAndContent.com
|
|
Copy This Article
For FREE!!!
You can use this article and copy it on your own website
for free! All you have to do is make sure the article
is copied with no changes and includes the "About
The Author" text. Also please ensure that all url's
are hyperlinked according. Thank you. |
Link To This Article - And We'll
Link Back To Your Website!
You are more then welcome to link to this article! All
you have to do is copy this webpage address from the
address bar and create a link on your website. Please
use the title of this article for your link text. Please
get in contact once you have linked to this article
and we'll link back to you! Thank you. |
|
|
|
Other great articles from this category...
|
Related Sites
|
|
