What is one sure way to know the economy is in deep trouble? Ask the IMF! The International Monetary Fund, largest lending and banking agency in the world has expressed serious concerns about the state of the european and us stock markets and overall financial health.
In its semi-annual Global Financial Report, the IMF team has jointly expressed a very negative view of the future. Saying that the current economic crisis is likely to be much worse than the recession we experienced in 2008, the IMF points out that all "risks are elevated, and time is running out to tackle vulnerabilities that threaten the global financial system and the ongoing economic recovery," IMF.
So how can we get out of this crisis? With very negative predictions and major cuts on its world economy growth forecast for next year, the IMF is skeptical, but not hopeless, "Restoring confidence in the stability of the U.S. housing market is the key to bolstering the prospects for U.S. banks," increasing spending and stabilizing the stock market.
So while no one is advised to blindly throw all their investments into penny stocks, buy multiple houses, or go crazy with retail spending; living as normal of a life as possible is the only way to get back on track. Buy, spend, sell, invest and be patient, is the advice IMF would give. Always remember that markets will correct themselves regardless of what you do do, but if you give them a little push, they will do so sooner than expected.
read more about IMF's gloomy predictions in today's msn money!
Wednesday, September 21, 2011
Wednesday, September 14, 2011
Penny Stock Tips:
Penny Stocks For Dummies
Though there does not exist a penny stocks for dummies book, it certainly should be written soon. The confusion surrounding penny stocks is really overwhelming for most investors. In fact there is a large community of investors out there, who dare not buy any penny stocks because they are completely clueless about these little treasures and too embarrassed to ask their more experienced friends.
So for all those who are not sure what a penny stock is, where it trades and what you need to do with it, here goes:
A penny stock lacks a formal definition but is usually understood to be a small cap stock which trades under 5 USD. Penny Stocks can also be defined as companies that have a market capitalization of under 200 million dollars.
Penny Stocks do not trade on regular stock exchanges, instead being listed on so called Pink Sheet. Pink sheets, another name for OTC boards, refers to the pink colored papers on which penny stocks lists are delivered to the broker, and through the broker to the investor.
This gets us to the next point. Penny Stocks can be very very tricky. Having to go through a broker and paying brokerage fee can be worth it but one has to be very aware of all the crooked and cheap brokers out there. That being said, penny stocks brokers should never be expensive and going the discount broker rout is the very best decision when making a penny stock brokerage account.
Another thing to be conscious of when investing in penny stocks is fraud. Pump and dump schemes and different price manipulations can be very serious and very common. However, luckily for penny stocks investors, the SEC has started cracking down on fraud in recent months. read more about penny stock fraud in this New York Times article.
Though there does not exist a penny stocks for dummies book, it certainly should be written soon. The confusion surrounding penny stocks is really overwhelming for most investors. In fact there is a large community of investors out there, who dare not buy any penny stocks because they are completely clueless about these little treasures and too embarrassed to ask their more experienced friends.
So for all those who are not sure what a penny stock is, where it trades and what you need to do with it, here goes:
A penny stock lacks a formal definition but is usually understood to be a small cap stock which trades under 5 USD. Penny Stocks can also be defined as companies that have a market capitalization of under 200 million dollars.
Penny Stocks do not trade on regular stock exchanges, instead being listed on so called Pink Sheet. Pink sheets, another name for OTC boards, refers to the pink colored papers on which penny stocks lists are delivered to the broker, and through the broker to the investor.
This gets us to the next point. Penny Stocks can be very very tricky. Having to go through a broker and paying brokerage fee can be worth it but one has to be very aware of all the crooked and cheap brokers out there. That being said, penny stocks brokers should never be expensive and going the discount broker rout is the very best decision when making a penny stock brokerage account.
Another thing to be conscious of when investing in penny stocks is fraud. Pump and dump schemes and different price manipulations can be very serious and very common. However, luckily for penny stocks investors, the SEC has started cracking down on fraud in recent months. read more about penny stock fraud in this New York Times article.
Monday, August 1, 2011
Penn Stocks For Dummies
Crash course through penny stocks: Penny Stocks For Dummies
Are you wondering about what are penny stocks, why people trade them and where they can be purchased? You are in the right place!
Penny Stocks are micro chip stocks which trade somewhere between a few cents and 5 dollars ( or ten as some investors like to say). These stocks are so small and cheap that they rarely qualify for a listing on a large exchange like AMEX or NASDAQ and thus they have to trade on over the counter boards. These boards are small exchanges, with low regulations that list companies with market capitalization of less than 300 million dollars (aka penny stock companies). These boards are public and offer the opportunity of purchasing a penny stock to practicaly everybody.
In order to purchase penny stocks on the over the counter exchange, you will need to take the following steps:
1. Read penny stocks for dummies and do tons of online research. Before even attempting to trade a type of stock as volatile and risky as penny stocks, you have to study up.
2. Get a broker. Penny stocks require you to go through a broker and have an active brokerage account. While some brokers can be pricey, there is a number of great discount brokers who are more suitable for penny stock trades.
3. Get a newsletter. There are many sources of information on penny stocks that can be found online. The problem is that you can never know how much of it is sincere and how much is plain old spam. In order to avoid confusion, sign up for a reputable newsletter. While some newsletters can be a little pricey, they are definitely worth it in the end.
Are you wondering about what are penny stocks, why people trade them and where they can be purchased? You are in the right place!
Penny Stocks are micro chip stocks which trade somewhere between a few cents and 5 dollars ( or ten as some investors like to say). These stocks are so small and cheap that they rarely qualify for a listing on a large exchange like AMEX or NASDAQ and thus they have to trade on over the counter boards. These boards are small exchanges, with low regulations that list companies with market capitalization of less than 300 million dollars (aka penny stock companies). These boards are public and offer the opportunity of purchasing a penny stock to practicaly everybody.
In order to purchase penny stocks on the over the counter exchange, you will need to take the following steps:
1. Read penny stocks for dummies and do tons of online research. Before even attempting to trade a type of stock as volatile and risky as penny stocks, you have to study up.
2. Get a broker. Penny stocks require you to go through a broker and have an active brokerage account. While some brokers can be pricey, there is a number of great discount brokers who are more suitable for penny stock trades.
3. Get a newsletter. There are many sources of information on penny stocks that can be found online. The problem is that you can never know how much of it is sincere and how much is plain old spam. In order to avoid confusion, sign up for a reputable newsletter. While some newsletters can be a little pricey, they are definitely worth it in the end.
Wednesday, June 22, 2011
Penny Stocks For Dummies
Penny Stock Basics
Most people think of penny stocks as micro caps that sell under 1 dollar, while the SEC's unofficial definition of a penny stock is a stock which sells under 5 dollars. While there is no official cut off on a penny stock price, companies are regarded as penny stock when they 1, have less than 200 million dollars in market value 2, are traded on Pink Sheets or Over The Counter Boards instead of legitimate exchanges like NYSE and NASDAQ.
Penny Stock Dangers
When investing in penny stocks there are too main dangers to keep in mind. The first being the financial risks connected with such a low liquidity, low market capital stocks; and the second, the security risks which accompany all OTC transactions. The most fundamental rule of penny stocks for dummies is: Do not get scammed. Sure, it sounds a lot easier than it is, but if you are very careful and selective you can avoid being a victim of another pump and dump, price manipulation scheme.
Penny Stock Aid
If you are too scarred and too inexperienced to get into penny stocks on your own, don't despair. There are many great newsletters, advisories and services to guide you through penny stocks.
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