Best Penny Stock

by Darren

Lot’s of people ask the question: “What is the best penny stock?”, and it’s not an easy one to answer. Considering how bad some of the companies that trade in the sub-penny range, it’s almost akin to asking “What’s the best disease I can get?” But if you do decide to find the best penny stock, there are a number of actions you can take to ensure your investment is at least relatively safe.

The best penny stock is the one you make money from

Firstly, let’s define a penny stock in the same way the SEC does.

The term “penny stock” generally refers to low-priced (below $5), speculative securities of very small companies. While penny stocks generally trade over-the-counter, such as on the OTC Bulletin Board or in the Pink Sheets, they may also trade on securities exchanges, including foreign securities exchanges. In addition, penny stocks include the securities of certain private companies with no active trading market.

But not all penny stocks trade on the OTC or the Pink Sheets. In fact, there are many $5 or less shares that belong to companies that trade in broader markets. These are the best penny stocks for you to research. In these penny stocks you might actually find a bargain. If you can find a company that is going through temporary problems but has excellent long term prospects, then you won’t need to hesitate in purchasing some shares.

The best penny stock is any company that is rebounding from temporary troubles and is poised to gain dramatically. You may also find a completely new company (rarer) that is just on the way up. In these events, your pennies may some day turn into dollars.

To learn more about Penny Stocks or to discuss Penny Stocks, please visit the Penny Stock Forum.