This one's a no brainer. While their are penny stocks and low single digit stocks that trade on the over the counter bulletin board and the pink sheets that may be attractive investments in some cases. Its always better to favor penny stocks and low single digit stocks that trade on the nasdaq or the new york stock exchange first simply because the requirements to qualify to be listed on these exchanges is far more strict than the requirements to be listed on the over the counter bulletin board or pink sheets. A great example of this is all companies trading on nasdaq and the new york stock exchange must be registered with the securities commision thats the SEC. This means that they must file financial statement such as 10Q'S and 10K'S. 10Q'S are quarterly reports 10'KS annual reports. Because of the more stringent listing requirements on these exchanges the quality of the penny stocks and low single digit stocks that trade on these exchanges tends to be of better quality than for stocks listed and trading on the over the counter bulletin board and pink sheets. As a result the level of risk for penny stocks and low single digit stocks trading on the nasdaq and new york stock exchange is generally lower than for the stocks that are listed and trade on the over the counter bulletin board and pink sheets. Another factor working in favor of stocks trading on the new york stock exchange and the nasdaq is they are getting better exposer being listed on a major stock exchange unlike stocks that trade on the over the counter bulletin board and pink sheets.
Some Excellent Resources On Penny Stocks
Penny Stock Investing Newsletter
Manhattan Calumet Value Stock Hotline
Smallcap Strategst
Red Chip Companies
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