invest In Penny Stocks - How To Buy Penny Stocks Online?
Ask any investor what a stock trading under is and they will tell you it is a Penny Stocks are not traded on a stock transfer like other stocks but they are traded in the over-the-counter (Otc) market. For the trading of most stock an agent will act on the investors profit and arrange a transaction directly between the investor and a third party. The broker then receives a commission for facilitating the trade.
A large proportion of all Penny Stocks are bought and sold, but rather there are a number of distinct prices. The difference between the bid and ask price is known as the spread. The spread of many Penny Stocks are ordinarily colse to 25-33% but can often be 50-100% or even more. There are also all the time two bid and two ask prices, these are known as the inside and exterior bid and ask. Keep in mind that it is the exterior bid and ask that is of most interest generally. Penny Stocks are also branch to mark up pricing. This is where a broker has held the penny stock in its list and has therefore taken some of the risk connected with market price fluctuation.
Although penny stocks are quite complicated and there are many problems connected with trading penny stocks as well as millions of dollars of loss, many associates still trade in them because they can help for example, struggling associates just beginning up. The best way of finding a good venture is by consulting with your broker. However in the penny stock market be very wary of brokers who are only trying to sell and may not have your best interests in mind.
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