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The top 10 penny stocks can be easily found online today. In the past, investors had to subscribe to various publications, most commonly the “Pink Sheet”, to find out what penny stocks were dominating the market. These stocks trade a bit differently than do those traded on the major exchanges. In fact, these stocks are not available on the major exchanges at all. These trade in a much different fashion.

A penny stock is a stock which trades for under five dollars per share. This is the definition used by the SEC. In most cases, these stocks represent a security in a small company rather than one of the large companies which are traded on major stock exchanges. These stocks are oftentimes attractive to first-time investors who find their low prices enticing. These stocks, however, do require more insight and a good grasp of how to make a sensible investment on the part of the purchaser. Because they are traded outside the major exchanges, they are inherently higher risk investments.

Find out the Top 10 Penny Stocks

Finding out which stocks constitute the top penny stocks does require some diligence. These stocks are listed on several different services, many of them online, by private companies. These companies are not regulated in the same fashion as are those which do business on the large stock exchanges. The price of the stocks is based upon the information furnished by the over-the-counter securities broker from whom they are purchased. There are no listing requirements for these stocks and the SEC has very limited authority over them.

These stocks can also exhibit a tendency to be volatile. For first-time investors they may prove to be the best type of stock due to their low price and the fact that they do have the potential to post significant gains. However, any listing which is used as a measure of the value of one of these stocks should be thoroughly investigated. One can use the OTC Bulletin Board system to investigate the current price of the stocks from a reputable source. One must maintain awareness, however, that these stocks are not subject to the same regulatory authority as are those traded on the NYSE and NASDAQ exchanges.