care2000 stock market investment

Investing in the Stock Market

There are a lot of people that like to invest in the big stock markets like the NASDAQ or NYSE but there are also many more that would like to but don’t because they think that either they do not have enough money to start or they do not know enough about trading. There is perhaps a solution for these people though, which could have trading stocks in the NYSE much faster or earlier than they had thought possible. That solution is investing in penny stocks. As explained on the Money Soldiers website, penny stocks are shares in companies but the only difference to these than to the shares on the big stock markets is that as the companies are small, perhaps worth less than $50 million, the price of their shares are only pennies and therefore considered too small for trading on the larger stock markets. The price of these penny stocks though fluctuates in the same way as the shares for larger companies do and so there is room to either make or lose money just as there is on the large stock markets. As these penny stocks cost less though, to start investing in them will take less capital than I t would take to start investing in the larger, better known stock markets. Profits can be made in penny stocks though as there is more than just one penny stock millionaire but it has to be said that they are few and far between as only 10% of investors in penny stocks are thought to make profits which of course means that 90% of the investors in penny stocks lose their money. One of the reasons why it is perhaps harder to make good investments in penny stocks is because unlike the larger companies which trade their shares on the large stock markets and so come under the Security and Exchange Commission regulations, the small companies are not governed by these rules. The ruling that probably has the most effect on investing is that the SEC insists that any company wishing to trade stocks with them, must provide information about their company for potential investors to see. As the small companies do not have to give this information, many don’t and so a potential investor must try and find out about a company they want to invest in, on their own. This lack of information that penny stock investors have has led some of the larger investors to refer to penny shares investing as a gamble more than an investment and even if that is true though, large amounts can usually be made in any sort of gambling. So, by starting to trade in penny stocks will give someone experience in trading and it will not necessarily need for them to have a large amount of money to start that trading as stocks are only worth pennies and not dollars. Some stock brokers will also trade in penny stocks as well as the more expensive ones and so if you can find one of these stock brokers, that is possibly the best way to start investing.
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