Pennies to Profit!

7/31/2019 Pennies to Profit!

1/11

We have all heard the success stories...of growing ones fortune through the stock market. Picking the right

Penny Stock at the right time and having it go up a huge percentage.

Have you ever wondered how the stock market works?

How does a person go from rags to riches, or riches to rags buying and

selling Penny Stocks? Is there a secret, or are people just lucky? As you

read this paper you will hopefully gain a better understanding of the basic

principals of buying Penny Stocks as a way to increase or safeguard yourwealth. Let me just start by saying that there are no guarantees when

investing in the stock market.

SPONSORED BY TICKER: MAXDwww.maxsound.com 2012 Max Sound Corporation


2/11

WHAT IS A STOCK?

A stock is type of security that rep-

resents ownership in a corporation.Corporations issue stocks to raise

money and grow their businesses.

There are two types of stock in a

corporation: common and preferred.

Common stocktypically carries voting rights that can be exercised in

corporate decisions.Preferred stockdiffers from common stock in that it typically does not carry

voting rights. It is, however legally entitled to receive a certain level of dividend

payments before any dividends can be issued to other shareholders.

PONSORED BY TICKER: MAXD

ww.maxsound.com 2012 Max Sound Corporation

WHY OWN A STOCK?

Over the years purchasing company stock has been

a great way to increase ones wealth. If a company

stock price goes up. The same holds true in reverse,however, and if the company loses money, the value of

true for your stock purchase


3/11

THE EXCHANGES

When one buys or sells a stock, it is generally done on an exchange.

There are numerous exchanges stock exchanges, both domestic and

international. The domestic exchanges are the New York Stock Exchange

(NYSE), The NASDAQ (NASDAQ), The American Stock Exchange (AMEX)

and then there is the OTC (Over the Counter).

For todays purposes we will be discussing the (OTC) Over The Counter.

The OTC stocks may not meet the general requirements to be listed onsome of the bigger exchanges such as the NYSE or AMEX. HOWEVER, YOU

SHOULD BE AWARE THAT MANY SMALL, DESERVING, COMPLETELY

LEGITIMATE COMPANIES ISSUE STOCK THAT TRADE ON THE OTC.

These stocks usually referred to as Penny Stocks.


ww.maxsound.com2012 Max Sound Corporation


4/11

WHAT IS THE OTC?

-

network as opposed to on a cen-

tralized exchange (LIKE THE NEW

YORK STOCK EXCHANGE).

-

broker-dealers who negotiate directly with one another over computer net-

-

which trade either on Over the Counter Bulletin Board (OTCBB) or on the Pink

because the Pink Sheets stocks are different from the Bulletin Board stocks.

Companies that are traded via Pink Sheets are not required to meet reporting

-

sion). For these reasons the SEC views companies listed on Pink Sheets as

-

ily research these companies before they plan to invest.




5/11

ALWAYS DO YOUR RESEARCH!

letin

broker, get the companys prospectus, ask for the periodic companys re-

ports and check on the web for any positive or negative articles concerningyour penny stock. Also, it is important to see if any complaints have been




6/11

WHAT IS A PENNY STOCK?

under $5.00.

BID, ASK AND SPREAD:

spread.

which you could possibly sell your stock for.

much one will have to pay to own the stock.

For example, lets say you want to buy a car and you want to spend $10,000

and dealership wants to purchase the car for $15,000. The $15,000 is the

ask, 10,000 is the bid, The difference between the $10,000 and the $15,000is the spread. Remember it is ok to try and buy or sell your stocks in the

spread. Unfortunately you run the risk of not selling or buying your penny

stock.

WHY ARE PENNY STOCKS APPEALING?

The reason is simple!!! Penny stocks can have MASSIVE, QUICK AND STUN-

NING GAINS!!! You can purchase a greater amount of shares for a smallerinvestment. Penny stocks can be purchased through any online broker or

through your investment advisor.


ww.maxsound.com 2012 Max Sound Corporation


7/11

BE SMART!

The true, penny player, will set a tar-

get and never look back! I suggest

you do the same. Either you limit your

loss by setting an exit price on what

you are willing to lose, or set a goal on

-

ber nobody ever got upset for making

out how much money you want to invest and only invest a portion of that

money into a single stock.

PENNY WISE.

ested

in. Make sure that the stock has not run up 90% in a short time, odds are

you may have missed your window of opportunity or the upside could be

-

lowing criteria:

that the market will need?

If you answered yes to all above the above questions, you could have

a better chance of providing successful returns rather than unlimited

losses.




8/11

MORE WORK TO BE DONE!!!After you purchased your stock, always check with the company on

-

nancial reporting and press releases. Call the investors relations de-partment. As the company grows, so should the share price of the

companys stock. Finally, make sure that the trading volume increases

daily. This tells you someone is trading your stock and if something

goes wrong, it can be liquidated. You want higher volumes so you know

someone will buy your shares if you decide to sell.

TAKE PROFITS OR A LOSS:If your stock is up always take your initial investment off the table andlet the balance ride to your set goals. If you are down from your pur-

chase remember your goals and stick to your exit plan. Never invest

what you cant afford to lose.


www.maxsound.com 2012 Max Sound Corporation


9/11

SUMMARY

With a basic understanding of penny stocks and sticking to an exit

would like you take away from this educational piece.

your losses should be dont invest at all.

until you feel absolutely comfortable with it. Know why you are in-

vesting in a company. Understand where you expect the share price

to reach, why the company is going to do well. Know at what point

-

ment NOT for you.

your eggs in one basket. Dont put all your money into one penny

stock!




10/11

limit your losses, since you can liquidate your

position easily and quickly if required. Good trading volume also dem-

onstrates that the company is more widely followed,

and therefore more likely to have strong investor interest.

then take original investment back.

OTC-BB (Over the Counter Bulletin Board). Avoid Pink Sheet Stocks.

your tax advisor if you have any questions concerning gains or losses

as a result of your stock purchase.




11/11

MORE INFORMATION:http://en.wikipedia.org/wiki/Penny_stock

For more information about the OTC you can visit the website at:http://www.otcbb.com/

For more information on the OTC rules goto:http://www.otcbb.com/issuerinformation/issuerinfo.stm

http://en.wikipedia.org/wiki/OTC_Markets_Group

What is the SEC?http://en.wikipedia.org/wiki/U.S._Securities_and_Exchange_Commission

To contact the SEC:http://www.sec.gov/

History of The Stock Exchange:http://en.wikipedia.org/wiki/Stock_exchange

DISCLAIMER:is purely the result of research conducted by our staff and are not offers or solicitations to buy or sell the securities mentioned. The trading of securities

interpreted as investment advice, or as an endorsement of any security, or as an offer to buy or sell any security. We are not a registered broker dealer, or-ing Penny Stocks. Any written or verbal communications, comments, reviews, or testimonials our company or any of its functioning properties is consideredobtained from sources believed to be accurate and reliable. However, due to the number of sources from which information is obtained, there may be delays,


ww maxsound com

Pennies to Profit!

Documents

Transcript of Pennies to Profit!