Bulletin Board Alerts: Sign up online to stay informed

by | Oct 31, 2011 | Money And Finance

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Investing in Small-Cap Stock can sometimes be lucrative, but if you’ve been getting alerts in your email or over the phone, there’s a lot to do before you act on any of those tips. Small-Cap Stocks are traditionally regarded as high risk, but if you do the required legwork and research your target stock thoroughly using Small-Cap Stock alerts, the chances of making your chosen investment work for you are better than ever.

Small-Cap Stocks, Penny Stocks, and Micro-Cap Stocks can be found on the OTCBB and Pink Sheets, which are somewhat different than the major exchanges like the NASDAQ or the NYSE. Firstly, the listing requirements on these boards are far less stringent than they are for the bigger exchanges, and this can mean a number of things.

If a company lists on the OTCBB or Pink Sheets, it will more than likely fall into one of two categories. That is to say, either it will be a relatively new company, or an older company that may have fallen on hard times and no longer has the capability of meeting the listing requirements of the major exchanges. Either way, the bottom line is that information regarding these companies is not as easy to find, so deciding whether they’re a good investment or not is a lot trickier. Signing up for Small-Cap Stock alerts is a good way to start.

Try to find information on the liquidity of the company and the quality of its management. If it owns any assets, find out what they are, and what they’re worth to the market. Checking through the history of the company’s share trading should give you an idea if the stocks have been subject to any form of manipulation in the past. If it seems so, be wary. Small-Cap Stock can be a greater risk than necessary if you believe everything you read or hear in the small-cap stock alerts that come your way.

Emails that promise huge returns from Small Cap Stocks and other types of stocks traded over the OTCBB and Pink Sheets are generally not worth opening, unless they’re from someone you know and trust. If you do happen to get excited by a Small-Cap Stock alert, or by a cold call from a broker with news that seems too good to be true, dig deep into the background of the company before you decide to outlay any money, and make the Small-Cap Stock alerts you come across work for you, rather than the other way around.

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