Where to Find Really Good Penny Stocks

You must have thought about penny stock investing to be reading this article. Many investors think that a penny stock is a stock that trades for one cent. Well they are right. Some penny stocks do trade for just one cent. But a broader definition of the term is a stock that trades less than $5 a share. Another definition of a penny stock is a stock that trades on the Over The Counter Bulletin Board or OTCBB. This definition is considered the most accurate by most.

So going by this definition means that the stocks you find on the NYSE or the NASDAQ trading under $5 a share are small cap stocks that companies who might be facing mismanagement or financial trouble. This means most of these companies are close to bankruptcies and soon will be delisted from NYSE or the NASDAQ Small Cap Market.

So what is the OTCBB? The OTCBB is a market where a company can get listed with less stringent requirements as compared to NYSE or NASADQ. Most of the young and promising companies start with OTCBB. OTCBB is a regulated quotation service. This market displays real time quotes. This is the place where you can find many penny stocks trading for just a few cents a share!