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Below the Radar: A Guide to Penny Stock Pitfalls and Profits
Penny-stock traders are like the Rodney Dangerfields of the investment world – they get no respect from their bigger brethren.
If a penny-stock trader made a killing on a few penny-stock trades, there’s a good chance he or she orchestrated a “pump-and-dump” scam – where a holder of a big block of penny-stock shares orchestrates a big whisper campaign to pump up the price of his shares. Traders rush in, driving the price skyward, enabling the perpetrator to “dump” his shares at a big profit.
The big sales, combined with the end of the hype, usually cause the penny stock to nosedive, inflicting the greatest damage…
1Jul2008 | Money Morning | Comments Off | ContinuedBelow the Radar: A How-to Guide to Pink Sheet Profit
Most investors have heard the term “pink sheets†as a reference to stocks. But how many know what they are.
Pink sheets are companies that are traded over-the-counter and that aren’t part of any major stock exchange. But that doesn’t mean they are any less valuable than traditional stocks, exchange-traded funds (ETFs) or mutual funds.
In fact, expanding your portfolio with pink sheet companies can be extremely lucrative, but you have to make the right moves to rake in the big profits.
Let me explain…
Pink Sheet Basics
Pink sheets began as listings on an electronic database provided by Pink Sheets LLC, and…
30Jun2008 | Money Morning | Comments Off | ContinuedInvesting in the Over the Counter Bulletin Board (OTCBB)
Most investors are weary about the Over the Counter Bulletin Board (OTCBB). That’s understandable, considering the amount of bankruptcies, shell companies, and de-listings that occur in over-the-counter markets. But there is a very large misconception that is widely shared among investors: that no over-the-counter company has to report current financial information. That is the case with the Pink Sheets, but not so with the OTCBB.
You see, before 1990 the over-the-counter securities market was a wild-west show. Not complete lawlessness, but close to it. So that year, the SEC started the Over The Counter Bulletin Board as part of the Penny…
6Jun2008 | The Penny Sleuth | Comments Off | Continued
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