| Penny stocks are stocks that normally
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| | company: Most of the companies that
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| hold a face value of less than $5. Many
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| | issue penny stocks do not have enough
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| small companies offer these low-priced
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| | reportable history to learn a significant
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| stocks to be traded on the
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| | amount about them for those investors
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| Over-The-Counter-Bulletin-Board (OTCBB)
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| | interested in doing research prior to
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| and the Pink Sheets. This is mainly
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| | investing their money. This is also due
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| because neither the OTCBB nor the Pink
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| | to the fact that the OTCBB and the Pink
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| Sheets require the same minimum
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| | Sheets do not have to issue financial
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| requirements as the NASDAQ or the New
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| | statements.Potential for fraud: Penny
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| York Stock Exchange (NYSE), set by the
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| | stocks are often sold through spam email
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| Securities and Exchange Commission.
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| | or off-shore brokers by con artists due
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| Businesses that are new or close to
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| | in large part to the lack of regulation
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| bankruptcy may issue penny stocks as a
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| | that penny stocks are not forced to abide
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| quick and easy way for these businesses
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| | by or suffer from.Although some penny
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| to create quick capital and try to save
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| | stocks are fraudulent and others are
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| the business from having to file
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| | companies facing bankruptcies, this is
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| bankruptcy in a court.As you can imagine
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| | not true in every case. Quite possibly
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| all of the aforementioned factors- low
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| | some of the businesses will one day be
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| price, lack of stability and lack of
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| | listed on the NASDAQ or NYSE, but are
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| standards- make penny stocks one of the
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| | currently struggling to meet the
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| most risky investments for anyone that is
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| | requirements. The opportunity to start
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| interested in playing or trading on the
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| | with these companies from the very
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| stock market. The fact is most penny
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| | beginning can pay off in the end, given
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| stocks do actually end up in bankruptcy,
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| | the growth potential. If you are able to
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| but the lure of the great payoff if a
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| | get in on the ground floor with a company
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| company does succeed, is enough for many
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| | that does find success, you could ride
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| people to pursue the buying and selling
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| | all the way to the top.It can be
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| of penny stocks. There are many other
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| | difficult determining which of these
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| reasons why penny stocks are risky and it
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| | stocks has the potential for growth. The
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| includes:Low or poor liquidity: Since
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| | easiest way to become a victim of fraud
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| penny stocks are not traded very
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| | is to do little, or even worse, no
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| frequently, there may be difficulty
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| | research. Obtaining this information can
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| finding a buyer. To interest someone in
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| | be time consuming and difficult, unless
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| buying these stocks, the price may have
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| | you have a very good knowledge of what it
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| to be priced substantially lowered.Little
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| | is that you are seeking.
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| or incomplete information about the
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