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Penny Stocks and PennyMarkets.com
If they are not already deeply in debt, many penny stock companies have little or no capital to work with. They will be using investors' money simply to keep the doors open. Read the financial statement and accountant's report in the prospectus and, if you don't understand them, find someone who does and can explain it all to you.
Watch out for interest-free loans to principals, transaction where the officers, directors, and promoters sell property to the company at inflated prices. This could indicate that the company is giving its money to the promoters in less than arms-length transactions and that there won't be much left to develop the property or product.
Investment in a legitimate emerging company is long-term. A good little company is not going to skyrocket in a couple of weeks. Building a sound company takes years; you have a few days or weeks to decide whether the investment is right for you.
Do not invest in any security without being told exactly how your money will be spent. Be sure you know which properties the company plans to buy with the offering proceeds and how much money is to be spent on management and promoters. |
BLOG for Penny Stocks Resource Check it out Penny stocks Blog looking at the latest and greatest news on upcomming otcbb, and pink sheet penny stock companies.
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Penny Stocks Trading Information Learn about how penny stocks generally trade, and how to avoid the big mistake.
Pinks Sheets Listing, and Trading Information Learn about the Pink Sheets, and how they can help your company move forward.
PennyStocks.com There are risks associated with trading penny stocks
PennyStockInsider.com Learn about penny stock investing, what are penny stocks? |
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