Typically penny stocks are the shares of small companies; that are highly illiquid and speculative shares. There is no common accepted definition of these stocks; some persons consider it to be any stock that trades for pennies while others consider any stock trading under $5 as penny stocks. When you jump into the market of small cap stocks, you need to buy and sell stocks; the process of both buying and selling is almost same. If you are interested to know the Penny Stock Selling Process, here are some important pieces of information for you.
Penny Stock Selling Process Points:
1. First thing which you need to know is the ticker symbol of the small cap stock.
2. The stock market which the stock is trading on. It can be OTCBB or Pink sheets, stocks, because small cap stocks are not traded in conventional stock exchanges.
3. The next thing which you must know is the number of shares you want to sell.
4. The next thing is market or Limit price. You inform your broker about the limit price on which you are willing to sell the stock.
5. Decide on the duration of your order, it’s the time period to keep the order open.
6. Realize the total costs you would have to pay, including commissions.
For example if XYZ shoot up in price while you held 3,000 shares, and hit $3.95. You want to generate profits by selling 2,000 shares and let the remaining 1,000 ride. You would contact your broker online or by phone, and your selling order will be in the following form.
“Sell 2000 shares of XYX, ticker symbol ____at $3.90, or more. The stock is on OTC BB and I’d like to keep the order open until Friday the 15.”
Your broker will try to sell the shares in the duration of your order, when price is between $3.90 and $3.95.
Fast Moving Stock does not own any shares or plan to get a position(s) in the company(s) anytime soon. Moreover, we have not been compensated for the posting of this article/report/analysis, as this is just an opinion of our writer/contributor. Not recommandation to buy or sell any stocks Read full