Are you a Victim of Fraud from investing in Hot Penny Stock Picks?
The companies of hot penny stock picks, lists, can be sent to you as alerts throughout the day. These alerts provide updated information on the hottest picks from the newest companies. These alerts advise of potential gain projection from 500% to 3000% and up! These stocks are traded hundreds of thousands of times a day.
There are hot listings on the OTC and on the NASDAQ that reflect the top fifty stocks that trade starting under one dollar. The list shows the Symbol, Company Name, Volume, Price, High Price, Low Price, 52 Week High and 52 Week Low. They are easy to follow along, keeping you informed and on top of the latest action.
All the companies traded are represented by an acronym of their names, such as: CBAI – Cord Blood America Inc. On the list the acronym is listed as a symbol. Clicking on any symbol will display a current and historical day by day activity roster, including news reports that are also time stamped.
The penny stock is termed as such as it is a stock that trades outside of the major exchange. It has an underlying negative aspect. This stock is considered a high risk investment due to the severe loss potential, and lack of being able to liquidate it should you wish to sell. It also loses all of its value in the long run, so you really have to know what you are doing if you trade penny stocks.
Penny stocks are sought after because of the low price and ability to have high gains. But they are definitely risky business. In the UK there is actually a standard regulatory risk warning applied that is issued by the FSA (Financial Services Authority) this is a result of the sudden changes in highs and lows that cause a chaotic response in the pricing.
On the major stock exchanges there are standards that must be met in order to be listed and quoted. On the OTCBB these standards have a minimal requirement to be quoted and lack financial reporting. Many can be fraudulent, and it would be wise due to the nature of these stocks to really do your homework before buying or trading.
Also be warned of Pink Sheet trading, which bears no safeguards to traders. It is cut throat at its best. The same holds true for Internet message boards. Both of these sources lack information, are not current or up to date and have the potential of being solely governed by a fraudulent nature. They produce such schemes as the pump and dump.
This is enacted by various sources of advertising that reflects the stock as a hot ticket item that is going like hotcakes and rising on the market. Many traders flock quickly to pick up this stock and it is purchased in huge quantities in a relatively short time. The fraud occurs when those who caused the price to be pumped up, sell their shares, and as a result of no more hype, the price drops and everyone else who didn’t sell take a tremendous loss.
The companies of hot penny stock picks are said to be the quick path to riches, but in reality if you are not a shrewd business man, it may be wiser to stay clear of this get rich quick invitation. Its trading practices have no liability of protection. This leaves a trader subject to being devoured by the many wolves lingering around or offering the stocks as bait.