Penny Stock Research Sources
Just because you don’t hear about penny stocks every day on your daily news, doesn’t mean that the penny stock market goes without drama. Penny stocks have acquired a reputation as a game filled with scams and corruption, because most investors don’t know how to find the best outlets to gain information about penny stocks. The key to any successful investment strategy is acquiring enough tangible information to make informed decisions. For penny stocks, information is much more difficult to find. Many companies listed on the pink sheets are not required to file with the Securities and Exchange Commission (SEC) and therefore are not as regulated as the stocks represented on the New York Stock Exchange and the Nasdaq. However, there are a few ways to compensate for this by referring to the penny stock research sources listed below.
OTC Markets Website stands for over-the-counter trading. The process of purchasing over-the-counter stocks is different than purchasing stock from companies on the NYSE and the NASDAQ. All orders of OTC securities must be made through market makers who carry an inventory of securities to facilitate trading. Most penny stocks are traded on the OTC, making the OTC Markets website the most comprehensive outlet for research on penny stocks. The website contains links to most of the financial SEC and EDGAR filings of penny stocks as well as official news or press releases.
Investopedia Website is a one-stop shop for anything in the world of investments. You are given the tools to look up definitions of terms, register for newsletters, see the volatility of any given stock, and much more. Here, you can learn more about stocks by searching for their company name or ticker symbol. Also, their “Financial Edge” section explains the fundamental principles of personal finance and the markets.
Yahoo Finance Website allows you to follow the stocks you selected and get personalized news and alerts. Here, you can access real-time information and investment updates to stay on top of the market. Also, you can find out more information about penny stocks.
The Wall Street Journal newspaper has been the go-to for information and research for investors. Although most have strayed away from the physical newspaper, the WSJ online has a become a database that contains even more relevant information than its dated predecessor. The Journal’s online presence has since increased—The Wall Street Journal, MarketWatch, Barron’s, and SmartMoney— and all related sites contain valuable resources for investing information, especially when looking for company-specific news.
Securities and Exchange Commission (SEC) Website contains a search engine that allows you to find all official filings made by a penny stock or any notices about an enforcement action from the SEC directed at any specific penny stock. Being up-to-date with these official filings and/or enforcement actions will make you a more informed viewer and a potential asset for penny stock investor.
The Motley Fool Website gives you the tools to start investing, discover stock ideas, find answers to common finance questions, track your stocks, join a discussion board with analysts and experts, find a broker, listen to industry experts radio shows or podcasts and receive premium advice from expert analysts. Here, you can conduct your own research on penny stocks or receive advice from a seasoned veteran.
Penny Stock Newsletters provide penny stock alerts or new penny stock research, but it is also important to remember that penny stock newsletters may be biased. These newsletters may be funded by a specific company, therefore swaying their content in favor of the company. Consequently, most penny stock newsletters should not be considered as the main sources for objective penny stock research. Nevertheless, if you are a penny stock trader, it’s vital to know what penny stocks are being followed by stock promoters in order to plan a competitive trading strategy.
MSN Money Website allows you to search for articles and any related news about penny stocks and it can serve as an avenue for portfolio boosting.
Investor Relations people are often an overlooked source for information on penny stocks. The investor relations persons is helpful you need a specific question answered and might direct you to any published research you may have overlooked. As with penny stock newsletters, this information might be biased; keep this in mind before making any decision.
Investing in penny stocks can be extremely risky and it is not for everyone. However, knowing where to gain information on them may be a giant first step in the right direction. Ultimately, you need to be your own penny stock research analyst by gathering and analyzing primary and secondary research until you can make an informed decision and invest. When you are looking to conduct your own investment research, closely monitor where you go online and always confirm with other sources.