| Penny stocks are widely supposed to be risky | | | | are various ways of collating the required information |
| investment instruments among investors because of | | | | to validate initial impression about a targeted penny |
| the many drawbacks associated with them. One of | | | | stock. These include periodic news letters published |
| those usually cited is that penny stocks hardly | | | | by many brokers to provide inputs on growth |
| change hands due to lack of market support and so | | | | potential of penny stocks short-listed by them for |
| selling them might not be that easy for investors. | | | | recommended trading. In addition, these brokers also |
| Since a savvy investor wants to be sure about the | | | | provide advice on a one-on-one level to their |
| liquidity of his potential investment, he thinks twice | | | | clients.The pink sheets and over-the-counter bulletin |
| before buying penny stocks. This is precisely because | | | | board (OTCBB) also publish transaction details of |
| many penny stocks with good growth potential also | | | | penny stocks traded there on a daily basis. These |
| fail to draw due attention from the investors at large. | | | | are the first hand sources of information on penny |
| But then, at the same time, that is also the reason | | | | stock trading and so investors would benefit by |
| why penny stock markets should be mined by | | | | monitoring them. Many penny stocks are also listed |
| investors for a likely treasure trove.Now that brings | | | | on major exchanges like NASDAQ as small-cap |
| us to the big question of how to spot penny stocks | | | | stocks. These exchanges require submission of key |
| with surprising growth potential in a market which | | | | details on related companies' business operations |
| apparently holds little attraction for investors. There | | | | under their regular disclosure norms. |