Prof. Tyler yamazaki

 
Scams and Penny Stocks
Scams are pretty prevalent inside the Penny Stocks world because they are
not part of the normal Stock Exchange. Many of the companies don’t even
follow the SEC rules so getting information that you need can be difficult. It
is easy for scams to arise in such situation.
As an investor, you need to be careful with your money and watch out for
these scams. There are many good companies you can trade with and make
some good money on, but there are also lots of bad brokers who will try to
just take your money, bad companies that want to make money quickly, and
even other investors who will start bringing up their own Stocks and earn
higher than they paid for a bad Stock. You need to be independent and learn
to think on your own so that you can get the best return on investment and
not get taken in by one of the scams.

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Getting started on Penny Stocks is pretty easy as long as you learn which
companies to trust, pick out a good trading account, and find a broker who
will not charge you too much to work with. Add in some good research and
one of the trading strategies that we will talk about below, and you are all
set in making some great money with Penny Stocks.
 
Misconception About Penny Stocks
It is common for people who want to make money off these Penny Stocks
to start spreading some rumors and misinformation about how Penny
Stocks will work. It is likely that you have heard at some point that many
popular Stocks on the market today started out as Penny Stocks. These
rumors are started in order to get new investors to purchase Stocks that they
wouldn’t otherwise at a higher price because they want to be in on the
ground floor of a company that is going to go big. However, as a diligent
investor, you will find out that this is not true at all and the only reason that
some of these companies had Stocks that were worth less money is because
they split up their Stocks, not because they started out as Penny Stocks.
Some people also assume that because a company offers Penny Stocks, it is
not safe to trade at all. This is true in some cases. There are some
companies who just want to make money quickly and then leave you with
something that is worthless, but there are also some companies that are
using this as a way to help them out. The regulations for getting on the
larger Stock Exchange are pretty strict and some companies are really great,
but miss out by a little bit for getting onto the common Stock Exchange.
They may start out as a Penny Stock while they work on making it to the
main Stock Exchange, theoretically there is nothing fundamentally wrong
with them. These are the companies that you will want to bet on because
they can make the best return on investment.
It is never a good idea to go into Penny Stocks thinking that it is easy. There
are many brokers and others who are in this business who will try to tell
you all their success stories and try to convince you that anyone is able to
get into Penny Stocks and make a fortune. These people are usually trying
to get you to buy into something so that they can make more money as well.

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There are a lot of misconceptions that are out there about Penny Stocks.
Some of them may be true, but many of them are just because of the buzz
that is around the Penny Stocks to get you to purchase them or they are
from people who just don’t understand how the market works. Before you
invest your hard earned money, make sure to take a step back and really
understand how these kinds of Stocks work so that you can make the best
possible decisions.

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