Pennystockscholarcom - Penny Stock Potential - From 5 To 300 Billion In 14 Years

Penny stocks, also known as small cap or micro cap

, refers to stocks that are available for purchase to the average American. It has gained much attention -- and controversy -- in the last 20 years because of its astounding growth.

From 1990 to 2004 alone, share volumes of penny stocks traded in OTCBB (well explain this later) have grown from approximately 5 billion shares to close to 300 billion annually! Anything that grows that fast catches attention and controversy, dont you think so?

Penny stocks, small caps or micro caps have varying technical definitions. The term Penny Stocks refers to shares that cost $5 or less apiece. Some put the figure at $1 or less. Micro cap and small cap refer to companies with $10-$100 milliion and $100-$1,000 million capitalization, respectively.

Micro cap and small cap companies usually trade their shares as penny stocks. That is why, at this time, the terms penny stocks, small cap and micro cap are used almost interchangeably.

OTCBB means Over-the-Counter Bulletin Board. This is one the venues where penny stocks are being traded. It is not as strict as the New York Stock Exchange. But companies that trade in OTCBB have to satisfy requirements of the Securities and Exchange Commission.

Pink Sheets is another venue. Companies that trade here are less regulated by the Securities and Exchange Commission.

Obviously, Penny Stocks have experienced a lot of growing pains. The same thing happened to regular stock exchanges in their early years. But every issue is being addressed by both the traders and the government.

Perhaps we just have to trust the numbers at this point. What can possibly account for the sustained growth of penny stocks for 20 straight years? Its got to be real, isnt it?

At the end of the day, all exchanges are subject to various levels of risk. Whether youre dealing with New York Stock Exchange, NASDAQ, OTCBB or Pink Sheets, each investor is expected to do his own due diligence and take responsibility for ones own investment decision.

Risk is part of the game. We dont hide that. If youre risk averse, just stay out of the game. There are investment vehicles that are much safer, though much slower.

What is certain is that penny stocks are here to stay. The only question is, would you take time to study this investment vehicle or not?

We challenge you to open a blank spreadsheet and start practice trading using the tips from our Newsletter.

Check this out:

www.PennyStockScholar.com

When your confidence grows, start replacing imaginary investments with real ones. The great thing about penny stocks is that you can limit your risk by limiting your investment. Because of the affordability of the stocks, you can buy several shares for $100.

This is why our Newsletter is great for starters:

www.PennyStockScholar.com

With enough experience in proper timing, risk management and handling your emotions, you can make that grow to $5,000 at an unbelievable speed.

But first, know how the game is played. Nobody knows how to ride a bicycle by reading a manual. Ones got to ride it.

Start here: www.PennyStockScholar.com

by: OTC Tip Reporter Team

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