If you decide to start trading penny stocks, it’s important to know about penny stock market list. From all of the stocks markets, commonly the first thing mostly comes to people’s mind are the New York Stock Exchange (NYSE) and Nasdaq. Both are well known in the trading sector for providing high-end stock trading platforms.
Although penny stocks are still difficult to find in those markets, they’re still out there. Both the NYSE and Nasdaq are the largest exchanges in the world by the value of listed companies and most new investors assume that the NYSE and Nasdaq are very similar to each other. In fact, there are major distinction between those two exchanges in how they work. Here are some of the differences.
Nasdaq Penny Stock
Nasdaq stands for the National Association of Securities Dealers Automated Quotations System. Nasdaq is the leader when it comes to market share and volume trade. Nasdaq has emerged in the last quarter-century as one of the largest stock market consists of more than 3,800 companies listed and major stocks that trade on the Nasdaq include Amazon, Apple, Google, Facebook, Intel, Oracle, Microsoft, and more. Nasdaq is a dealer’s market which is the participants do not do transactions personally but through the dealer without the auction and the stocks are traded via network.
Nasdaq known as a high-tech stocks markets that consist of electronics, software engineering, and internet companies. Although Nasdaq penny stocks are more risky and volatile, many investors prefer Nasdaq because there are many opportunities for those companies in the future. Following Penny Stocks to Watch on Nasdaq is a good choice to pick the right company and to find hot penny stocks.
The other penny stock market list is NYSE, stands for New York Stock Exchange. NYSE is the leader when it comes to market capitalization. Compare with Nasdaq penny stocks, NYSE penny stocks are less risky and more solid than Nasdaq Penny Stock because the NYSE is home to many blue-chip firms as well as industrials that well-established such as Walmart, IBM, and General Electric. In fact, most blue chip companies become successful penny stocks started off from NYSE.
There are not that many penny stocks trading that we can find on NYSE but we still can find stocks trading under $5 on NYSE. The NYSE is an auction market which is the buyer and sellers trade physically by matching their bid and ask price.
Besides the NYSE and Nasdaq, there are penny stocks that trade exclusively in the OTC markets. OTC is a market where participants trade stocks directly between the two parties and without a central exchange or broker. The OTC marketplace is an alternative for small companies where securities that are traded Over-the-Counter do not meet the requirements to have a listing on a standard market exchange such as NYSE and Nasdaq. Therefor, stocks that trade via OTC market are called unlisted stocks. The examples of OTC are OTCQX, OTCQB, and OTC Pink Open Market.
Compare with the NYSE and Nasdaq, trading on the OTC market carries more risks such as counterparty and liquidity. Besides that, stocks on the OTC market has highly susceptible to manipulation and fraud because companies trading on the OTC market has fewer trading regulations. Fewer regulations allows the entry of many companies who do not listed on other exchanges. To make sure the safe stock markets, it’s important to know more about the penny stock market list.