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Sub penny stocks are stocks whichtrade for partial pennies, meaning they are bought and sold for between .0001 and .0009 a share. These stocks are priced lower than any other stock on the market. Many investors feel that sub penny stocks are the riskiest investment, because they are so volatile and are often offered by companies without a track record or financial history. Sub penny stocks may be offered because the company has suffered some financial set back and the stock has lost an incredible amount of value. Sub penny stock investors are betting that these shares will see some growth. Sub penny stocks are either on the way up or the way down, and the successful investor is able to predict the difference. Sub penny stocks do not trade on the major market exchanges; rather investors purchase the stocks using the Over The Counter –Bulletin Board or the Pink Sheet exchange. Pink Sheet stocks are tradedover the counter on the OTC Markets Group and are not subjected to the regulation or listing requirements set by the Securities and Exchange Commissions (SEC). Since they are not subjected to federal regulation or Securities and Exchange Commission (SEC) oversight, sub penny stocks carry a higher risk of price manipulation and investor fraud than either traditional stocks traded on exchanges or penny stocks traded OTC-BB. Very small, thinly traded US companies are likely to make their home among the pink sheet and sub penny stocks. These companies may not have, or may not make standard financial information, like sales, earnings, debt, and liquidity information available to investors. Investors should pay attention to what information is- and is not offered by the company. Investors looking to invest in sub penny stocks need to pay close attention to where and from whom they get their research, information, and analysis. Major finance sites like Yahoo Finance, Google Finance, and Bloomberg have some limited information about pink sheet and sub penny stocks. Investors should pay close attention to the company information and disclosure statements. If the company files anything with the SEC, investors will bebe able to read those reports online. In addition to providing basic share structure information, this site also lists company contact information, which is important if you need or want to contact the company for additional information. Sub penny stock trading sites and their affiliated message boards and chat rooms are also good place to find information about volatile stocks. Active sub penny stock and pink sheet investors use these chat rooms and discussion forums to share information and tips about their investments and portfolio, providing a more detailed and personal perspective. Sub penny stocks investors feel that these volatile investments pose both big risks and the opportunities for bug rewards. Investors with a high tolerance for volatility and the ability to conduct comprehensive research can find bargains and opportunities. If an investor can discern which stock is moving up and which stock is moving downward, he or she will be poised to turn a big profit. Are you looking for more information regarding subpenny stocks? Visit http://www.smart-investing-in-stocks.com/invite.html today for more information!
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