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Bankvest.com - Pennystock Investing |
The goal of pennystock investing is to get high returns. Penny stock investing is filled with risk and the investor wants to be compensated for assuming the risk. A penny stock by definition is a share that trades under $5. They are issued by young companies in order to finance product development or for expanding their businesses. Penny stock shares trade on the following exchanges: NASDQ, the OTC Bulletin Board and the Pink Sheets.
Profitable pennystock investing involves finding companies with the best potential of increasing shareholder value. These companies are run by aggressive management teams, have a special competitive edge and plans to become major competitors. Prudent penny stock investing is holding several companies and not putting all funds into one stock play. |
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Most Active Stocks: Nasdaq National Market |
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| Small Cap Indices
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| Major Indices
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| Do's and Dont's of Investing |
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The Do's |
| Determine if the stock meets your long term investment objectives before buying. A good company tends to appreciate over the long run. |
| Consider dividend stocks. Companies that pay out dividends tend to generate attractive shareholder returns over time. |
THE DON'Ts |
| Buying a stock after it appears on the front page of various business magazines. By this time, investors have already discounted most of the good news. |
| Over diversifying your stock portfolio. Investing in too many stocks could nullify returns and make your portfolio difficult to manage. |
| Investing on a stock on a whim. Before putting your hard earned cash on anything, the proper research needs to be done to evaluate the risks. |
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