Q: What are Bulletin Board Stocks or OTCBB?

A: Bulletin Board are traded over the counter and generally not listed or traded on the NASDAQ or a national securities exchange. Bulletin Board Stocks are traded by a community of Market Makers entering quotes and trading reports facilitated by an advanced computer network known as the OTC Bulletin Board (OTCBB). The system displays real time quotes, last sale prices, and volume information for bulletin board stocks. Unlike Pink Sheet Stocks, Bulletin Board Stocks are required to periodically file financial information with the SEC or other regulatory body to preserve quotation eligibility.

Q: What are Pink Sheet Stocks?

A: Historically, Pink Sheet Stocks were traded over the counter and their bid and ask quotation prices were actually published and distributed on pink sheets of paper. Today, Pink OTC Markets Inc. provides the leading inter-dealer electronic quotation and trading system in the over the counter securities market. Pink Sheet Stocks are now traded using their internet-based, real-time quotation service that electronically publishes the bid and ask prices of Market Makers and brokers within the Pink Sheet Stocks trading community.

Q. What are penny stocks?

A. A. Penny stocks are stocks whose shares sell for less than $5, and often trade as low as $0.01 or less.

Penny stocks are stocks that usually trade at extremely low prices. They trade on the OTCBB (Over the Counter Bulletin Board) and the Pink Sheets. They are also known as microcap stocks.

Q. Why invest in Penny Stocks?

A. Penny Stocks are becoming more popular as the months go on. More people are investing in them since there is much more profit to be made. It is hard to find a $30 stock that goes to $120 while it is much easier to find a stock that goes from .30 to $1.20.

Q. Why day trade penny stocks? Why not day trade blue chip stocks?

A. Penny stocks yield the greatest daily percentage gain than any other stock on the market! Penny stocks rising 50%, 70%, 100%, in one day is not unheard of. On the other hand, blue chip stocks only rise a fraction of a percentage most of the time. They DO NOT display great percentage gains. Therefore, day trading penny stocks will give you the best bang for your buck in a day.

Q. How much money does it take to get started investing?

A. You can get started buying, selling, and trading penny stocks with just about any amount of money. The first thing you do is open up a trading account at one of the deep-discount brokers. Some require no initial deposit at all. Others require $500 to $1000, and others want $2000 to $5000 or more.

You can buy 1000 shares of a 50 cent stock for just $500.00, plus a couple of bucks for the brokerage fee. The cost of the stock and the total number of shares is what determines your startup cost. Buying smaller stocks allows you to control more shares which will offer you much greater profit potential.

Q. What are the differences in markets?

• Gray Market: Stocks traded here have no reporting requirements and can only be bought and sold through market makers involved with the particular company. There is no electronic or publicly market price dissemination for bids or asks.
• Pink Sheets: Stocks traded here have no reporting requirements, although many provide information voluntarily. Quotes are readily available and many the stock can be purchased from any number of brokers.
• Over the Counter Bulletin Board (OTCBB): Stocks traded here have are required to file audited financials and reports with the SEC. There are no minimum listing requirements. They generally offer greater transparency than pink sheet or gray market stocks.
• NASDAQ, AMEX, NYSE: These stocks generally are fully reporting and must meet certain listing requirement minimums in terms of assets, revenues and shareholders.

Q. Why subscribe to PennyStockShocker?

A. We are the fastest growing penny stock site on the Internet today.  We scan hundreds of Penny stocks daily to bring you the best Penny Stock that will break out and make you shocking profits!  We will always announce to you a day ahead of time so you can get ready, and generally we will release our pick after the market closes.  You will get the Pick, and why we think this Penny Stock will explode!  And we will continue to update you on any changes in the Penny Stock with regards to news.