What is a penny stock? There is no official and definite definition for that. Some say - any stock under $2, others say under $5. But there’s consensus that a penny stock any stock that trades under one dollar. A sub-penny stock is a stock that trades under one penny. (.001-.01) and a sub-sub penny stock or super sub are those trading in the .0001-.0009 range or at hundredth of a penny. There are different markets that penny stocks trade on like the OTC Bulletin (OTC-BB), over the counter (OTC) and pink sheets markets in the
Also there is the American Stock Exchange (AMEX); the NASDAQ and AMEX are the safest with reporting requirements that enables investors to have access to companies and their financial files. Pink Sheets are risky with no reporting requirements and sometimes, they even gag the transfer agent so that you can’t find out the share structure, (which is a bad sign). Yet these risky, pink sheet stocks give you an amazing and most, if not all of the super subs, are pink sheets. The super subs give you the most for your buck and also, the leverage you get with super subs makes up for them being more risky. I would not call it investing with pink sheets since it is pure speculation. With short term penny stock trading, it’s all about the timing.
You can make money buying the worst companies at the right time and money can be lost buying even the best companies at just the wrong and inopportune time. Actually buying and SELLING at the right time will make you money and its industry information that 80% of a successful trade is in selling at the right time.
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