Why Generally Avoiding Most Of The Penny Stocks Or Low Single Digit Stocks Trading On The Pink Sheets And the Over The Counter Bulletin Board Is Usually A Good Idea'
I always like to stress to penny stock investors and investors in low single digit stocks. First focus on stocks that trade on the nasdaq or the new york stock exchange before venturing into stocks that trade on the over the counter bulletin board or pink sheets. The reporting requirements and other criteria required to qualify to be listed on the nasdaq and new york stock exchange are a lot stricter than for stocks that trade on the pink sheets and the over the counter bulletin board. As a result the quality of the penny stocks and low single digit stocks that trade on these exchanges tends to be a lot better than most of the penny stocks and low single digit stocks trading on the over the counter bulletin board or pink sheets. Be especially careful when it comes to stocks that trade on the pink sheets. Companies trading on the pink sheets are not required to be registered with the sec this means their may not be any financial statements or other financial material that is easily and readily available to investors in these stocks. You can determine where a stock trades by simply asking your stock broker.