Be Sure To Read This If You Are Looking At Penny Stocks
What are penny stocks? These kind of shares tend to suffer from weak fundamentals, an almost bottomless number of outstanding shares, and unstable management. In addition, penny shares tend to sport very low institutional ownership, which makes their price volatile. If you are interested in can stock options in this kind of share, you need to be aware of its risks. You should also know how to go about choosing a good penny stock.
The Penny Stock Market – One of the best things about penny stocks is the fact that they are easily found on the Nasdaq. This makes them easily accessible to all kinds of investors. However, because there are so many of these kinds of shares floating around, it is important for you to realize that the prices of these stocks can vary drastically. This is why some traders choose to just stay away from Nasdaq penny stocks altogether.
Various Things That Affect Penny Shares on Nasdaq – On the other hand, biotech penny stocks are not traded directly on the Nasdaq. Instead, they are traded through what is called the Over-the-Counter Market, or OTC. Traders and investors who want to buy and sell biotech stocks will instead go through a Nasdaq broker. There are also many online trading services that enable you to trade Nasdaq biotech stocks. Of course, you can still get the same sort of efficiency and speed that you would get from an OTC broker, but since you do not have to go through the hassles of traveling to the office, you may not actually have as much spare time to do your investing.
The Difference Between Nasdaq and OTC Markets – Penny stocks on the Nasdaq are restricted to trades that are done within the United States. This is so that they are less likely to be influenced by foreign markets, especially those in China. On the other hand, penny shares on the OTC are allowed to trade anywhere in the world, although there are some restrictions placed on how they trade. For instance, one of the biggest limitations is when a company makes a news release or announces financial results that it is making outside of its home country. This is why many investors prefer to just go with an OTC broker rather than try to day trade Nasdaq stocks.
What Are the Big Successes? There have been numerous success stories on the Nasdaq, as well as on the OTC. Two of the most recent examples include Biogen, which was recently able to raise more than $6.8 million in capital thanks to the Series D equity financing. Also recently popular was AbbVie, which was able to raise over $1.5 million for its line of products. Biogen is the top selling biotech stock on the Nasdaq, while AbbVie is the top performing biotech stock on the OTC. These successes are good indicators for investors looking for biotech penny stocks that they can get a large profit from.
Now… Let’s make one more point. In order for these penny stocks to succeed and do well, you must remember a very important piece of advice. Do not be afraid to lose money… in the beginning! The key to being a successful penny stock investor is to stay greedy… don’t be greedy enough to allow your emotions to guide you. Following this advice will steer you into the direction of successful investing in penny stocks.