Penny stocks, or cent stocks, or micro cap stocks are purchasable shares in small businesses that are trading at low prices. In America this low price is defined as anything below five dollars; in the UK the limit is up to one pound. Some of these shares trade for fractions of a cent. Small investors are lured into playing the market by the attraction of low prices and the promise of massive potential gains. Before investing any money, you should do plenty of research. There are countless numbers of promoters claiming to offer you the "next big thing". Remember that they are not doing this out of the kindness of their hearts. Your best source of advice could well be from the best penny stock newsletter. |
The market is highly volatile and dangerously open to manipulation. Many promoters use newsletters as a means of running "pump and dump" schemes. Share prices are artificially inflated by hard sell touts who put misleading or false positive statements into their newsletters to drive investment into companies in which they own stock. As this investment pushes up the value of the shares, they sell quickly for big profits, leaving the duped investors with worthless items that they cannot get rid of.
State security legislation, the Financial Industry Regulatory Authority and the US Securities and Exchange Commission all apply definitions, rules and regulations to the this market. However, as most micro cap shares are bought and sold through over-the-counter bulletin boards (OTCBB) or the "pink sheets", means that these companies need not file information to the SEC. The public are largely left in the dark and at the mercy of con-artists.
The rise of the internet and social network sites make these forms of micro cap stock fraud easier to perpetrate. Cent stocks are not as regulated or accountable as stocks traded on major exchanges. The information in many newsletters comes from dubious sources.
Small investors can easily fall for a "penny-baited trap". "Investor-relations specialists" are employed to recommend a micro cap company's stock through e-mails, spam and newsletters. Many newsletters hide a disclaimer about this practice in small print.
Free online tips are typically offered by touts who are paid to pitch particular micro cap shares in order to create exposure for that company. Just about all newsletters in this shady business tell lies. Very few people are trustworthy; cynicism is justified; the dodgy reputation of such trading is fully merited.
An honest bulletin does not simply advise which shares to put your money in, but also informs you about the right time to sell. Nearly all subscriptions to newsletters are free, so enrol with a variety and evaluate their different recommendations before starting to invest. Take any free online lessons available to investors.
Uncovering the best penny stock newsletter demands research into online reviews that include independent statistics. There are many great apparatus offering daily performance news on many newsletters, permitting you to find the ones that genuinely select successes. Only lay out what you won't miss in any gamble when dealing with this rather questionable practice.
You can subscribe to the best penny stock newsletter by visiting our official website. To access insider investment tips, check out the links at http://www.bestdamnpennys4bucks.com today.
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