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.
Unless you're extremely skilled and are able to earn profits on the market already, don't become a stock broker. You're placing yourself at risk if you fail to trade successfully for them.
I once attempted to apply to become one, but when I found out that you had to pay for the insurance yourself, as well as the certificate, and then you had to find customers yourself, I said no. The insurance doesn't cover a large loss either, so as Jimmy says, just trade yourself.
Brokers are professional experts in the stock market and shares.
You can freely trade for yourself but when you involves third parties to the transaction you are required to have some certificates and also insurances. You will also have to pay brokerage fees and comply with all the laws and regulations stipulated for this market.
My advice to you is to trade for yourself but don't involve other apart of family or friends because if not you are going to need a lot of things.
Hope this was helpful.
JC
Hey, I've been working the antiques trade for a number of years now, and I love the sales side of things ! I would like to elevate my income why I have free time, I heard that brokers can work from home for businesses or themselves and get companies leads ? then get a nice commission if the deal goes through. Where would I find the work ? Are there any good sites ? Would I need a licence ? Any info on how I can make this happen would be great ! I want to sell sell sell, make make make money.
