• Archive for January, 2011

    What are Penny Stocks?

    January 18, 2011 // Comments Off on What are Penny Stocks?

    Any stock which is traded outside of the major stock exchanges is considered a penny stock, as well as those trading on the major exchanges but are worth less than $1.00 per share.  They are common shares of small public companies, and are considered to be highly speculative investments. They are most often traded over the counter, through the OTCBB and Pink Sheets. Penny stocks are considered large risks because they are not liquid and have large bid-ask spreads. There is also small capitalization with limited following and disclosure.

    Investors should be highly wary of investing in penny stocks through the internet. It is easy to create a scam to increase interest in a certain penny stock, causing investors to make purchases of the stocks at an inflated value, allowing the scammer to unload his shares at a higher, inflated, and incorrect price, leaving the shareholders behind with stocks worth much less than they paid. Because penny stock companies have low liquidity, it can be difficult to sell shares.

    Posted in General

    Becoming a Coin Dealer

    January 16, 2011 // Comments Off on Becoming a Coin Dealer

    Starting a coin dealership business does not have to be complicated if you follow a number of simple steps. If you have already been collecting coins as a hobby, the contacts and experience you have collected can aid you greatly on your path to becoming a dealer.

    First, launch your business in a professional manner. Choose a company name, and invest in business cards and a website. Make sure you library is well stocked, and that it includes books such as The Official Redbook: A Guide Book of United States Coins as well as The Official American Numismatic Association Grading Standards of United States Coins and the latest edition of U.S. Coin Digest. Magazine subscriptions are also a great way to keep your finger on the pulse of the coin market.

    Make sure you are well educated in the value of coins and different demands. Learn how to grade coins properly, and build your collection as you do so. Make sure to buy coins that you know will sell. Promote your new business in coin magazines and online, and offer honest, personal service. Good luck!

    Posted in General