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Many new investors are lured to the appeal of a penny stock due to the low price and potential for rapid growth which may be as high as several hundred percent in a few days. Similarly, severe loss can occur and many penny stocks lose all of their value in the long term. Accordingly, the SEC warns that penny stocks are high risk investments and new investors should be aware of the risks involved but you can even make very big money. These risks include limited liquidity, lack of financial reporting, and fraud. A penny stock is a common stock that trades for less than $5 a share. While penny stocks generally are quoted over-the-counter, such as on the OTC Bulletin Board or in the Pink Sheets, they may also trade on securities exchanges, including foreign securities exchanges. In addition, penny stocks include the securities of certain private companies with no active trading market. Although a penny stock is said to be "thinly traded," share volumes traded daily can be in the hundreds of millions for a sub-penny stock. Legitimate information on penny stock companies can be difficult to find and a stock can be easily manipulated.
It is really easy. Stock market is where you buy and sell shares. First, you have to open an account with a recognized and regulated broker, such as TDAmeritrade or Scottrade. You must fund your account and start investing. To get the information you need to make profits with adequate risk, follow twitter accounts of firms such as AllianceBernstein, ValkCorp, Morgan Stanley, The Street. They will help you and can answer all your questions.
I know nothing about stock market, mutual funds etc. I want to invest in stock market to buy shares, How would I get through it??
