Risks in penny stock investments

Penny stocks: There is always a risk factor associated with every stock, however being traded at few counters, the penny stocks are little more risky. The risk factor increases if you avoid some precautions that are necessary.

Risks: The investment in penny stocks is highly risky due to various factors. Some of the common risks are as given below.

- There is no reliable and authentic information available for penny stocks. Whatever the information comes to us that comes either through stockbrokers or through the agents of companies offering penny stocks. The seller or broker who sells the penny stocks might get money from the company for selling the shares and therefore can mislead the investor. It is therefore necessary for the investor to carry out the detailed research before investing in penny stocks.

- It is sometimes difficult to find the buyer of specific penny stocks you have purchased from the broker even the same broker may not be interested to repurchase the stocks from you.

-Sometimes the companies having no financial asset or no financial history comes in the market and collect money from investors and therefore before investing in penny stocks, you should study the company offering the penny stocks. You should study the prospectus of the company very carefully and should see whether the share prices of the stocks are justified. Some of the dealers sometime inflate the stock prices fraudulently.

- You should know your broker, as he is the main person to whom you are dealing. Ask about him from some of the other dealers and customers. You should seek complete market information from your broker including the difference in bid and sale prices of the stocks. Ask him to provide his suggestions in writing and seek a second opinion about the recommendations he made.

- You should know the nature of the stock on offer. Many times the initial public offers are more risky than other. You should invest your money after satisfying yourself from the various factors including the financial conditions and assets of the company. Sometimes you may lose a majority of your investment or your entire investment in a specific penny stocks if a careful and wise decision is not made.

- Before making an investment in a specific penny stock, you may ask about your broker’s history including any disciplinary action taken against him or her from NASD. You can also seek additional information about your broker from your state office of SEC (Securities and Exchange Commission). If still you think that you have become a victim of fraud, our federal law has provisions of rights and remedies available to you. You can file a complaint at the Securities and Exchange Commission.

Summary: Although investment in every stock is risky, even then taking some precautionary steps you can avoid risk in penny stock up to a great extent. One of the major precautionary steps is avoid hurry and do thorough research before investing in penny stocks.

5 Medicinal benefits of Sugarcane

Sugarcane is a tropical, perennial grass that forms lateral shoots at the base to produce multiple stems, typically three to four meters high and about five centimeters in diameter. The stems grow into cane stalk, which when mature constitutes approximately 75% of the entire plant. A mature stalk is typically composed of 11–16% fiber, 12–16% soluble sugars, 2–3% non-sugars, and 63–73% water. A sugarcane crop is sensitive to the climate, soil type, irrigation, fertilizers, insects, disease control, varieties, and the harvest period. The average yield of cane stalk is 60-70 tonnes per hectare per year, however this figure can vary between 30 and 180 tonnes per hectare depending on knowledge and crop management approach used in sugarcane cultivation. Sugarcane is a cash crop , but it is also used as livestock fodder. [ 6] 1. Sugarcane juice increases vigour and sexual ability. 2. improvement takes place in burning in urine, thirst, cough, fever, indigestion, joint pain et

Investing in penny stocks

Investing in penny stocks The first question is 'To invest or not invest' in penny stocks. This is largely a personal decision that reflects your risk profile. If have the capacity as well as the nature to take greater risks, you could be looking at penny stocks. If your financial position is not very strong, and you have little spare money to invest, it is better that you keep off penny stocks altogether and look at established stocks only. Similarly, even if you have a lot of money to spare but are generally averse to taking risks, it is better that you don’t invest in penny stocks. If you are the kind of person, who likes to take risks in order to increase your returns, and can afford to lose some money if it comes to that, then you could look at penny stocks.

Shocking and Interesting Facts about Stuttering

Shocking and Interesting Facts about Stuttering How do people usually react when they hear someone stutter? They most likely make fun of the stuttering person. And how do people usually perceive someone who stutters? Stupid, dumb, or even good for nothing. A person’s competence or personality is always judged based on how good a speaker he is. That is a sad reality for many people who tend to stutter. Whether you are among the 1 percent of the world’s population that stutters or not, it helps to know and understand the basic facts about this speech condition to put things in a better perspective. This is especially helpful for parents with children who stutter.

Way To Success

Search This Blog