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To buy the best penny stocks you need to assess the ratings of some of the low value stocks, take risks, think extra, identify the potential stocks, learn about market practices and be cautious of scammers. The current market is highly unpredictable and even the leading stocks of reliable stock exchanges such as NASDAQ and NYSE are not able to provide investors with the desirable earnings after long periods of investment, then how to invest in penny stocks? Penny stocks are not listed with the national stock exchanges such as NASDAQ or NYSE, and the stocks belong to companies that have a small market capitalization value which is less than five million dollars. Instead, penny stocks are listed with pink sheet exchanges and information related to penny stocks is provided at over the counter bulletin boards. You can buy penny stocks through pink sheet exchanges which have an electronic quotation system to provide the price and quotations related to every stock. As per US Securities and Exchange Commission, the definition of a penny stock is the stock which is traded for value less than 5 dollars and moreover, it also indicates the stocks which are taken for some pennies. The website of OTCBB can tell you about the various aspects of penny stocks including the operating costs, the revenue and profits. To find out the best penny stocks, you should try to gain information related to the ratings and assess the balance sheet of the company. Watch out for the bull running stocks which are traded in great volumes (more than 100,000) each day, analyze the earnings per stock and you should spend only a percentage of total investment on one stock. The scoop of trading with penny stocks is you get quick money and you can trade many times in a day but there is a limitation of up to five trades a week for trades having value below twenty-five-thousand dollars. Many investors are planning to buy penny stocks, as it can provide amazing returns in a short period of time but you should follow rules to pick the best penny stocks - you should buy stocks of reliable companies which have high earnings and low debts. The stocks of government sponsored companies are believed to be consistent and also the stocks of growing companies which suffered a setback during a recession can be trusted. Stocks belonging to technology, oil and power sectors of companies having huge reserves can provide some of the best penny stocks and even the stocks of certain mining sectors such as metal mining are considered money-making. No worries now on how to invest your money wisely as the answer can be reach out this link best penny stocks you may also visit: good penny stock picks.
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