Should You Buy Penny Stocks? Why You Should Resist the Temptation!

penny stock

Many investors are drawn to buy penny stocks because they believe they can obtain a sizable gain on their investment. Therefore, the term, penny stock, is often synonymous with a micro-cap stock. Micro-cap stocks have a market capitalization which is the total market value of a company’s shares that are outstanding of $50 million to $300 million. Companies with market capitalizations of $50 million or less are hazardous and are classified as nano caps. Cap is short for capitalization. Some investors are drawn to the idea of quick, sizable profits when they invest in penny stocks. After all, it is pretty tempting to think that you can buy 50,000 shares with only a $500 investment. But, regardless of how small … Read more

What Is A Stock Split? And Should You Trade Before One?

What Is A Stock Split?

get in on the hottest iposA stock split is a tactical decision and action made by any publicly traded company’s board of directors that increases the number of existing shares by splitting or dividing the shares into more shares.

What Is A Stock Split?

At first glance, it is a positive thing to investors and stock shareholders since their number of shares owned will increase. But, in reality, a stock split is not a value adding event. It doesn’t detract the value either.

A stock split is just an accounting sleight of hand that increases the number of shares while maintaining the same overall value. The underlying value of a shareholder’s share is not changed at all by a stock split.

Nevertheless, a stock split is usually conducted at a time where the value of certain shares become way too high for new investors or are convincingly higher than other similar companies’ stock share prices.

This way, anyone who wishes to buy shares from a company is able to do so at lower costs since each share’s value is divided in certain multiples.

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Why Do Companies Carry So Much Cash On Their Balance Sheets?

A balance sheet of a company is where records of how much money the company has, how much debt it owes, and what is the remaining amount for the stockholders. It is a financial statement that lets investors know where the company stands with its financial accounts. If you want to keep track of how well the company you have invested in is doing and if they are in good status, you might want to check out those companies’ balance sheets. How Balance Sheets Are Constructed But if you are new to looking at these things, it is important to know something about balance sheets. The first thing you will see and notice in a balance sheet is the asset … Read more

The Best Websites for Stock Quotes for Investors and How to Find Stocks

Note – The following blog post may contain affiliate links. I earn a small commission if you click on a link on the best websites for stock quotes and purchases. Like always, all opinions are my own. Investors are always striving hard to grow their portfolio, and seeing it grow with buy and hold strategies and trading strategies is the ultimate reward. However, you may be questioning how to find the best investment strategy and best stock pickers. Finding those things will enable you to find the next top stock and high-quality trade setup. Suppose you are looking to boost your portfolio in the long term. Finding the best website for stock quotes and research can make all the difference … Read more

Top Two Ways to Invest in the Hottest IPOs on the Market

Ways to Invest in the Hottest IPOs

Ways to Invest in the Hottest IPOsThe initial public offering market is finally starting to heat up again in the United States. This week three big named companies went public along with several others, and much more are set to begin offering shares within the next few months.

And, of course, the talk of an eventual Facebook IPO and Twitter IPO has the internet and technology sectors of the stock market all a buzz. But, that doesn’t mean that it will be simple for the average individual investor to get in on the action, but it isn’t impossible.

Two Ways To Get In On The Hottest IPOs

Buy Shares In IPO Mutual Funds and ETFs

Unless you are a high-value client with a high net worth, you will most likely not be able to directly participate in a company’s initial public offering of its shares the day or two after they come onto the market.

But, you can have access to these types of high-flying companies such as Demand Media and Nielsen Holdings, which compiles all of the television ratings and other media data that drive things like advertising rates and what we watch through mutual funds and exchange traded funds that specifically trade IPO stocks. There are funds that specifically deal with these companies initially coming onto the market which is normally inaccessible to the average individual investor.

Invest in IPOs with Motif Investing> $0 Commission Trades> Pre-Market Access> Flexible Dollar-Amount Investing

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