Where Do Penny Stocks On The Rise Trade?

| November 17, 2014 | 0 Comments

New York Stock ExchangeFind Penny Stocks On The Rise In These Spots…

There’s a variety of platforms where penny stocks on the rise trade, but not all markets are created equal.

Major markets, like the NYSE and NASDAQ, have specific and strict standards for stocks trading there.  It’s like the Harvard or Princeton of the trading world…

On the other hand, the Pink Sheets and the Over-The-Counter markets do not have the same strict requirements.  They don’t require the same financial information reporting, stock price, or shareholder count.

Like a community college – they have their arms wide open to all who apply.

Understanding how different markets tolerate and regulate penny stocks can help you make informed decisions about what penny stocks to invest in.

Penny stocks on the rise can be found in all of these markets, but clearly some carry more risk than others.  For example, the penny stocks on the NYSE or NASDAQ still have to meet the market’s reporting requirements – which means more information for investors…

Navigating the balance between risk and return is a big part of trading with penny stocks on the rise.

NYSE and NASDAQ for Penny Stocks on the Rise

Both the New York Stock Exchange (NYSE) and NASDAQ are the most reliable sources for penny stocks because they demand that regular reports get filed with the SEC.  They also have minimum capitalization requirements, and are quick to kick off companies not meeting these standards.

The NASDAQ has many mid-range penny stocks that sell between $2.00 and $5.00 a share. The market includes many technology and biotech companies.  They are often earlier stage type companies.

You should be able to find plenty of financial information like quarterly reports, annual reports, and 8-K filings for companies found on NYSE and NASDAQ.

On the OTC markets, it’s a different story…

Penny Stocks on the Rise and the OTC-BB

There are thousands and thousands of companies on the OTC markets.

Some started on that exchange, others started trading there when the company was kicked off of the larger exchanges.  One exchange that trades OTC shares is the OTC-BB exchange and is owned by NASDAQ.

Many newer or smaller companies can be found on the Over-The-Counter Bulletin Board (OTC-BB).

These companies on the OTC-BB are still required to report their financial information regularly and are regulated by the Securities and Exchange Commission.  However, some basic capitalization requirements are waived.

With the Pink Sheets and the rest of the OTC market, you might be in the wild, Wild West…

The Pink Sheets and OTC for Penny Stocks on the Rise

Many experts recommend avoiding the Pink Sheets and the Over-The-Counter when buying penny stocks.  I call B.S. on that statement…

Stocks on the Pink Sheets are not required to fulfill any requirements in terms of up-to-date financial statements.  This lack of information provided by OTC and Pink Sheet stocks makes them very risky for investors.

However, many companies still release financials, but they don’t file them with the SEC like the larger exchanges require… so if you dig, you can find some financials.

Also, many foreign companies will list on the Pink Sheets to make them more attractive to U.S. investors.

Many penny stocks on the rise can be found on the OTC or the Pink Sheets.  You’re more likely to run into stock manipulation schemes and attempts to rip off inexperienced traders.

You just have to get into trading these stocks with your eyes wide open.

Profitably Yours,

Penny Stock Research

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Category: Investing in Penny Stocks

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