In this part, we will review the penny stocks list 101 matter. In addition to the price, the number of shares determines the market value. The high number of shares is also crucial for Alumina, with the stock market value standing at more than AUD 7 billion despite the optically low share price. Often the general price level has to do with the respective stock culture or the stock corporation law of the country.
While in some countries capital increases can easily be carried out at prices of a few cents and lead to a corresponding “dilution” of the share capital, in this country a minimum exchange rate of 1 euro is required. This is why only European shares below the 1-euro mark are listed, which – without the so-called reverse split, ie the pooling of shares – are no longer able to refinance via capital increases on the stock market.
Penny stocks list 101- Information and tips
Special Situation USA: Stocks below $ 5 are considered penny stocks. In the US, stocks below $ 5 are also called penny stocks. Because to be listed on one of the regulated major US exchanges, such as NYSE or Nasdaq, a minimum price of 5 USD is required. Therefore, stocks under $ 5 are often listed and tradable only in the largely unregulated over-the-counter (OTC) trading of the Pink Sheet. Pink Sheets is an off-exchange platform of private bank Pink Sheets LLC for OTC trading in the US. Since information and transactions used to be recorded on pink notes in these shares, the name “Pink Sheets” was born. In order to be traded there, neither a registration with the US Securities and Exchange Administration (SEC) nor minimum legal requirements such as publication requirements have to be met.
Penny stocks list 101- Tips and tricks
Investors and traders buy the proverbial “cat in a poke”, because all information is not checked and therefore not reliable. Even pricing is not governed by rules, so Pink-Sheets’ stock is considered a high-risk gambling paper and a scam. Incidentally, the market segment became famous through Jordan Belfort the “Wolf of Wall Street”, because its fraudulent business, concerned exactly this “Wild West” market segment.
In the Hollywood film adaptation, the lead role of Penny stock promoter was played by Leonardo DiCaprio. For more article about the penny stocks list 101, stay tuned us always. Wish you a good luck on market.