Penny Stocks

Penny stocks, also known as cent stocks in some countries, are common shares of small FINRA have specific rules to define and regulate the sale of penny stocks.

[edit] Concerns for investors

Many penny stocks, particularly those that trade for fractions of a cent, are thinly traded. They can become the target of [11]

Penny stock companies often have low liquidity. Investors may encounter difficulty selling their positions after the buying pressure has abated, and the manipulators have fled.

Another fraudulent scheme is the sale of Regulation S are illegally sold to overseas or domestic retail investors.

[edit] Regulation

In the United States, regulators have defined a penny stock as a security that must meet a number of specific standards. The criteria include price, [17] However, sanctions under these specific regulations lack an effective means to address pump and dump schemes perpetrated by unregistered groups and individuals.

[edit] References

  1. ^ "Penny Stock Rules". United States Securities and Exchange Commission. 2008-04-04. http://www.sec.gov/answers/penny.htm. Retrieved October 18, 2012.
  2. http://www.investopedia.com/terms/p/pennystock.asp#axzz1qZSI1umR. Retrieved 30 March 2012.
  3. ^ SEC (2005-01-11). "Pump&Dump.con". U.S. Securities and Exchange Commission. http://www.sec.gov/investor/pubs/pump.htm. Retrieved 2006-11-21.
  4. ^ FINRA (2012). "Spams and Scams". Financial Industry Regulatory Authority. http://www.finra.org/Investors/ProtectYourself/InvestorAlerts/FraudsAndScams/index.htm. Retrieved 2012-07-29.
  5. ^ Harry Domash (2000-06-12). "Internet Makes Scams Easy". San Francisco Chronicle. http://www.sfgate.com/cgi-bin/article.cgi?file=/chronicle/archive/2000/06/12/BU11242.DTL. Retrieved 2006-06-15.
  6. ^ "Importing By Encouraging Fans To Invest". Huffington Post. 11 January 2011. http://www.huffingtonpost.com/2011/01/11/50-cent-makes-87-million-on-twitter-encourages-fans-to-invest-in-scheme_n_807327.html. Retrieved 30 March 2012.
  7. ^ Penny Stocks. "Penny_Stocks". Twitter. http://Twitter.com/Pennydealer/.
  8. ^ "Lithium Exploration Group: Beware of Mailmen Bearing Gifts". Seeking Alpha. 10 May 2011. http://seekingalpha.com/article/268947-lithium-exploration-group-beware-of-mailmen-bearing-gifts. Retrieved 30 March 2012.
  9. ^ Gary Weiss (1997-12-15). "Investors Beware". Business Week. http://www.businessweek.com/1997/50/b3557003.htm. Retrieved 2006-06-15.
  10. ^ http://www.thechairmansblog.com/alex-walsh/2012-07/lexg-answers-dean-beeby-of-the-canadian-press-on-lithium-mining.html
  11. ^ http://topics.nytimes.com/top/news/business/companies/mariposa-resources-ltd/index.html
  12. ^ http://www.sec.gov/rules/final/34-51983.pdf
  13. ^ http://www.sec.gov/news/press/2009/2009-117.htm
  14. ^ http://articles.latimes.com/1990-03-20/business/fi-532_1_penny-stock
  15. ^ http://www.sos.ga.gov/securities/
  16. ^ http://www.deseretnews.com/article/111783/GEORGIA-LAW-WONT-HURT-BROKERS-JUDGE-RULES.html?pg=all,
  17. ^ http://www.nytimes.com/2003/02/16/business/penny-stock-fraud-from-both-sides-now.html?pagewanted=all&src=pm



Source: Wikipedia