Where To Buy Penny Stocks For Fun And Profit

| February 27, 2015

nyseWhere You Can Buy Penny Stocks

It’s shocking… many experienced traders have no idea where they buy their penny stocks.  When asked where they buy their penny stocks, they say their broker.

The truth is to buy penny stocks, you’ve got to go to the exchange.

Stocks are traded on exchanges or markets.

The most prestigious is the New York Stock Exchange – The NYSE.

There are hundreds of exchanges all over the world, and every single one of them trade penny stocks.

An exchange is like an auction house… people bring shares to sell and buyers show up ready to bid on and buy those shares.

The role of a market is to balance buyers and sellers.

Now over the last few decades, the number of exchanges has been dwindling as they merge and computers change the way trading stock is handled…

Let’s take a quick look at the big exchanges:

New York Stock Exchange – NYSE

The NYSE is the granddaddy of the exchanges.  The trading occurs on the floor of the exchange in New York.  Because of its elite status, not many companies trade for pennies.

NASDAQ Stock Market – NASDAQ

The NASDAQ really made a mark for itself over the last few decades.  They invented electronic trading in 1971!

The NASDAQ doesn’t have a central location where stocks are traded… stocks are traded electronically on their network.

The NASDAQ has a bunch of listing requirements… so like the NYSE, there are not many penny shares out there.

There are other places to trade… 

NYSE MKT (formerly American Stock Exchange – AMEX)

Older traders might remember the AMEX… they were acquired by the parent company of the NYSE in 2008.  They were re-named and rebranded as the NYSE MKT.

Which is different from the NYSE… Confusing I know.

Anyway, this market still trades stocks focusing on mainly smaller companies.  But the majority of penny stocks trade elsewhere.

OTC Bulletin Board – OTC BB

The OTCBB exchange is operated by FINRA.  They are a NON-government agency regulating the securities industry.  They oversee broker dealers and exchanges…

So they have their own exchange listing stocks (actually it’s not an exchange… it’s a quotation system… splitting hairs I know) … it’s just like the NYSE and NASDAQ… but here’s the difference.

ANY company can be quoted on the OTCBB as long as they are fully reporting with the SEC.

The last big exchange is…

OTC Markets Group – Pink Sheets

OTC Markets Group is a direct competitor of the OTCBB.

Now keep in mind, OTC Markets Group is a public company… and they specialize in the exchange for Over the Counter and abandoned stocks.

The OTC Markets Group will take anyone.  You don’t even need to have your SEC filings to be up to date.

According to the OTC Markets site, more than 9,000 stocks trade on these exchanges!

So if you’re trying to figure out where to buy penny stocks… that’s your answer.  When you place your order… your broker goes out and buys on your behalf from one of these exchanges!

Good trading…

Brian Kent

Note:  Brian Kent has been trading the markets for more than 2 decades and now writes and edits for PennyStockResearch.com.  You can sign up for the penny stock research newsletter a trusted source for the truth about penny stocks! Sign up today and get a free research report – http://pennystockresearch.com/free-reports/.


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Category: Trading Penny Stocks

About the Author ()

Brian Kent is the Editor for PennyStockResearch.com. He also pens Penny Stock All-Stars, an investment advisory focused on discovering small-cap and micro-cap stocks that are destined to become the market's next Blue Chips.