A Brief Explanation Of Penny Stock And Pink Sheets What is a penny stock?

Do you often heard about buy penny stocks or pink sheets penny stocks?

Are you an investment stock or do stock trading? If you are not an investor or trading, maybe you imagine that stock investment is expensive, it requires large funds that can only be done by rich people. The stock investment can be started with limited capital.

This is what later led to the stock game which was later given the name penny stocks. Using the word penny itself to represent that the current game of buying and selling shares does not always have to be done in large funds and by wealthy people, but can even begin with the magnitude of the penny. Of course, between penny stock and other stock games, there are some differences in the system. For example, the number of shares there are. If in general there are estimated to be 100 shares in 1 lot of shares, in the penny stock the number of shares can be more.

pink sheets penny stocks

Not only that, but there are also differences in the fraction system in the price game. In the sense of multiples, the values for numbers going up and down in their shares are valued in different ways. Also with the system changes that become symmetrical.

The risk level of penny stock


At the moment these low-priced stocks are traded on the negation marker. With the existence of special exchanges, these stocks are expected to be more flexible, in the sense that they can become higher levels of buying and selling interaction and are more actively traded.

For those of you who want to try your luck in this penny stock game, because the stock price is lower and is considerably cheaper, it does not mean you can be careless and underestimate the trading process in it. One thing to remember, investing or trading in a penny stock, is not free from risk. Stock prices can go down drastically for each sheet. Now you must have the right investment plan and strategy so that you can better control your investment.

The explanation about pink sheets penny stocks


After talking about some explanations about penny stock, then we will discuss the pink sheet. In a stock exchange game or system, there are several major exchanges, which are usually played for stocks of large value. But then there is also a place for those who want to try to play with lower-priced stocks. However, because it turned out that the main stock exchange did not provide a place for it, a new stock exchange was opened, which was devoted to turning stocks with lower values. This stock exchange is then called the pink sheet.

Pink sheets are usually used as a medium for registering stock games that cannot be done on major stock exchanges. This pink sheet is usually intended for those who plan to sell shares through an over the counter system, or simply do not have to be done on the main stock exchange. That's why this pink sheet also usually builds partnerships with private companies, which act as dealers, or dealers of the shares being played.

It is on this pink sheet that penny stock is played. Because the size of the stock price in the penny stock is much smaller than the stock that is usually played on the main exchange, the penny stock is usually registered through a penny sheet, through the over the counter system.

Now that is some explanation about penny stocks, then the pink sheets penny stocks. For those of you who want to try playing penny stock, and also starting stocks through the over the counter system in the pink sheet, you must first learn about risk management and be careful to choose a strategy. Because a low stock price does not mean you are free from the risk of loss.