HOT PENNY STOCK PICK

If you are wondering where you can find a hot penny stock pick, you need to know where they are traded and the differences. There are two places they are traded, the OTC or over-the Counter Bulletin Board and the Pink Sheets.

The OTC Bulletin Board is also known as OTCBB. This is an electronic quotation system displaying a real-time quote, the last sale price, and the volume information for many securities. These stocks are not listed on the NASDAQ or an any other national securities exchange trading. Brokers have to subscribe to the system. This allows them to look up prices and enter quotes in the OTC system. Many times a fraudster will tell you or advertise that their company is a NASDAQ company to mislead an investor into thinking the company is much bigger than it really is. This is common. Usually, an OTCBB company is small and their revenues are small and the amount of stock being traded is small. If you see huge numbers, then it should raise a flag. There are many fraudsters in the OTCBB market and it is important to understand what a real OTCBB company is. When you find a hot penny stock pick it is important to gather as much information about the OTC company that you can so you are protected. The OTCBB is regulated by the NASD, which makes some people feel more comfortable.

The pink sheets are listings of price quotes for companies that trade in the OTC market. They are called pink sheets because they are printed on pink paper. In addition, the company that publishes the pink sheets in hard and soft copy is called Pink Sheets. Bids and ask prices are published using pink sheets by brokers known as market makers. Pink sheets are not regulated by the SEC and they are not registered by the SEC.

Two places to find hot penny stock picks are in the pink sheets and the OTCBB. Both stock options are risky to invest in and many believe that the OTCBB is slightly safer from people trying to commit fraud because they are regulated. Be sure to gather plenty of information prior to investing in what you believe to be hot penny stock picks.