1b. Penny stocks are ones where the price per share is below some limit (varies from broker to broker, but usually below $3). These are shares in small companies with a short history - they are exciting, fast-moving (both up and down)
2. How much to invest - decide what you could blow on your own entertainment, lose and never miss it - you must never invest so much that it breaks you if it goes wrong
3. I won't recommend a broker, but I will suggest you visit a newsstand, buy a magazine aimed at small investors, see if they do a comparison of prices and deals. On the issue of trust, you have the SEC to protect you.
4. "Black money" is slang for money earned through criminal activity. It has to be "laundered" before the owner can use it openly. If the owner gets nvestigated, wants to be able to make it look like the money came from some honest activity.
5. Bank account - I would expect yes. Stockbroker will usually not let you have a stock-buying account without a bank account to back it up. Note that it is possible and legal to buy shares directly from the person who owns them - but never ever do that with strangers, because you bypass all the legal protection. Not a god thing to do for a beginner at investing.
Note that a beginner should only invest in companies of his/her own country. Foreign investing is for experts only.
1. Portfolio is a collection of different investments making up your whole investment. Usually for purpose of DIVERSIFICATION. Penny stocks are very low priced stocks on a junior (less regulation) market. Basically to be AVOIDED.
2.Difficult to answer. I would say minimun $10000
3.If your on-line broker is authorised and regulated by the relevant financial authority then you have no worry. Different companies have different platforms and resources so probably a matter of personal choice. An on-line broker is CHEAP so understand you GET WHAT YOU PAY FOR.
A traditional broker should be better, more personal, more flexible, more.....but you will have to PAY more for their services.
4. Don't worry what it is. Possibly money from black economy (illegal, proceeds of crime).
5.Yes. You need a bank account to send & receive money to and from broker.Also you will need proof of ID, financial standing and give details of your financial profile/standing etc. (Know Your Client).
Penny stocks are stocks which have a low value. There is no specific price that a penny stock has to be for it labeled a penny stock, however in the UK Penny stocks are often shares with a value between 1p and ￡1. In the US penny stocks are between 1 cent and $1.
Penny stocks are popular because any increase/decrease in their value results in big profits/losses for the trader.
Example
a trader invests $10,000 on two different shares, share A @ $40 and share B @$0.75 (penny share).
share A has a value of $40 and gains 25 cents (0.625% gain) 0.625% of $10,000 = a profit of $62.50
share B (our penny stock) has a value of 75 cents and gains 25 cents. A 33.33% gain. A 33.33% gain of $10,000 = a profit of $3,333.33!
This clearly show that profits and losses are far steeper with penny stocks, which can represent an attractive investment for someone who needs quick money. However there are 3 major downsides when trading penny stocks;
penny stocks lack liquidity and you may not be able to get out of a trade when you want to.
there are schemes with penny stocks whereby someone (crooked Craig), informs everyone (people with little stock market education), to buy a specific penny share (which he already owns), then sells the penny stock after everyone he has informed to buy it, buys it. This means crooked Craig has made his profits whilst potentially leaving other people in a dangerously volatile trade.
penny stocks can lose you money as fast as they can help you gain it, however this isn’t so much of a down side as this is the case with all investments.
- See more at: http://www.sharesexplained.com/penny-sto...
If you are a new investor dont go into stock directly , i would advice you to invest in mutual fund and SIP technique first then go ahead with stock
I'm actually have done some researches on online broker ( Stock Market ). But as I'm not a native speaker or advanced in English, I Found out that I don't really understand. So I need some answers (in simple English)
1: what do Portfolio and penny stock mean??
2: how much money should I spend to buy stock (shares) as I am a newbie? (100$ or what)
3: what is the most trusted online broker??(recommend)
4:what is black money? is it involve in Stock world?? ( I heard from my friend )
5: I have to get a bank account ( from a bank in my country) to buy a stock . (true or false)
Thank for answer (but please keep it as simple as you can because my English is really bad.
