• At April 12, 2013
• By admin In Penny Stocks 0

Penny stocks are stocks that trade at moderately low market prices and usually occur outside the major stock market trading.  A greater majority of these stocks takes place over the counter either through pink sheets or OTCBB.  Currently, there are eight main types of penny stocks in the market.  These include:

Penny stocks phone salesman:  These types of penny stocks are usually traded over the phone.  They usually come in handy when in need of making fast investments within a short time.  In this case, the salesperson makes you a deal over the phone so that you can get the best competitive offer before other investors do.

Hot tip penny stock:  These penny stocks are usually promoted by professionals who have inside information on which penny stocks are most likely to hit the roof.  This particular promotion is done via the phone, through the social avenues or from one person to another.

Very low volume penny stocks:  These stocks are the cheapest in the trade market hence giving the investor a chance to invest as much as they can.  Though it may be hard to determine the future of the stock like how profitable it may be in the future, in the long run, the investor is most likely to generate a lot of profits after they make a sale.

Guaranteed performance penny stocks:  These penny stocks are the ones that are guaranteed to go up and earn the investor profits within a very short time.  It is however worth noting that although there is a guarantee that the stock will go up, it is similarly more likely to go down as well.

International penny stocks:  If an investor is living in USA, he/she can invest in penny stocks from an overseas country like in Europe or Africa.  These stocks usually tend to sell at a much lower rate and are also more likely to generate more profits in the future.

Commission free penny stocks:  These stocks do not charge any commission fees to the investor hence making them more readily available, accessible and profitable since they do not charge any commission fees to the investor.

Sinking ship penny stocks:  These are the kind of penny stocks that keep going lower and lower thereby giving you a good bargain for they cost much lesser.  Usually, such stocks tend to recover sooner hence giving you heavy returns.

Warrants and rights:  Warrants and rights are derivative investments offered by companies based on their shares.  These particular penny stocks require much attention and an investor is advised to verify their purchase with their broker, and keep an eye on their stocks.