Basic Guidelines On Canadian Penny Stocks
With Canadian penny stocks, it is now very easy for new and small Canadian companies focusing on commodities and technology to participate in stocks trading and show their ability to create shareholder value through the Toronto Stock Exchange and the TSX Venture Exchange before they embark in bigger stocks trading. Canadian penny stocks can be bought for only $5 or even lower than this. With Canada’s rich and abundant natural resources paired with great minds of excellent Canadian university graduates, there is no doubt that this penny stock will boom.
Canadian penny stocks may be purchased through a stockbroker who is authorized to buy Canadian stocks. Canadian dollar is the currency used in Canadian stocks trading. As with any hot penny stocks, you would want to choose a company that shows financial stability in the future through developing highly-competitive products and increasing their sales and profits.
USA investors can only trade in the Canadian penny stocks with three basic methods: 1) Buying pink sheets; 2) Opening up an account with a Canadian stock broker; 3) opening up an account with an US stock broker with an access to the Canadian securities.
When purchasing pink sheets, you will be given a list of companies that trade everyday. Just remember to first do your research by talking to people with experience in Canadian penny stocks. You can also read Canadian penny stocks newsletters. This is because pink sheets are an unregulated secondary market. Like other trading options, companies often participate on the TSX Venture Exchange until all requirements for Toronto Stock Exchange listings are fully satisfied. Aside from that, you can even take advantage of the extra research services offered by the stockbroker. The first and third options will help you stay away from the high cost of currency exchange when selling and buying Canadian penny stocks.
Below are the steps to buying Canadian penny stocks:
Step 1:
Inform your investors about your plan of buying Canadian penny stocks. Your investor will then introduce to you a stockbroker who will then buy Canadian penny stocks either from Toronto Stock Exchange or TSX Venture Exchange.
Step 2:
Ask your investor as well as your stockbroker about what penny stocks have steady or going up performance. This is a very important part as it already signals that you are ready to invest. Just remember not to invest in a company with unstable records
Step 3:
Decide on how much you are willing to invest on these penny stocks.
Step 4:
Visit Toronto TSX Venture Exchange or Stock Exchange’s website everyday to get updates on your Canadian penny stocks. It pays to always examine the performance of your penny stocks in the Canadian economy. Keep in mind that this is your investment, it’s just right to give it time and effort.
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