According to the SEC penny stocks are not and should not be considered to be investment vehicles. Penny stocks ARE NOT for newbies. Only those with trading experience should consider trading in pennies since they understand the market, the risk and the problems associated with penny stocks.
When buying penny stocks, like any other security investment, you never invest 100% of you investing capital. Penny stocks are fun to trade, but you should never count on them to be considered part of your primary investment objectives. One should not trade penny stock unless they have several years experience trading regular securities.
If you want to buy penny stocks, any brokerage firm can execute your orders for you, however, keep in mind most firms do not like to trade in penny stocks
From a brokerage firm’s perspective having their customer deal in penny stocks is a loosing proposition. Many firms do what ever they can to discourage such investments/trading, especially from new accounts. No firm wants to be known as a “penny stock” firm, this would not be a honor but an absolute disgrace.
Investing in penny stocks is one of the riskier behaviors that traders and investors may engage in within the greater stock market.
1.Know that several factors make penny stocks particularly risky
2.Open a brokerage account
3.Look at trade status for penny stocks
4.Don't always believe the hype
Find a stock and throw a penny at it.
Congratulations, you're now an investor.
Find out as much as you can about penny stocks
contact a broker who specializes in penny stocks
Subscribe to online subscription services as an alternative to using a broker
Familiarize yourself with the companies offering penny stocks
Understand that penny stocks are traded over the counter
Think about investing in a penny stock still listed on Nasdaq.
Investing in penny stocks is riskier behaviors that traders and investors may engage in within the greater stock market.
