Small Cap Stock Alerts – Small Investment, Big Opportunity
You have received a Small Cap Stock Alert and before we get any further, you may ask: “What actually is a Small Cap Stock?”
The term Small Cap Stock refers to stocks with a small market capitalization, between US$250 million and $2 billion, however it is important to note that small cap stocks are not Penny Stocks. Many small cap stocks trade at much more than $1.00/share. These stocks in question are mainly traded the OTCBB (Over The Counter Bulletin Board) as the larger stock exchanges like the NY Stock Exchange have more stringent requirements for companies to be listed, whereas the OTCBB have more lenient listing requirements.
Another pertinent question is: “What do I do after I receive a Small Cap Stock Alert?”
Even though an online site may have advertised a stock as a great investment opportunity, before acting on any Small Cap Stock Alerts, you should consult a registered financial advisor and do due diligence. Small cap stocks have a reputation for being very risky, not only because of the size of the issuing company, and the fact that the stocks are listed on the OTCBB (Over the Counter Bulletin Boards) where the brokers set the buy/sell price, but they are frequently associated with fraudulent brokers.
By consulting with your financial advisor, someone with a thorough understanding of the small cap market and its volatility, you can eliminate some of the guess work and gain an understanding of the risks involved in investing in small cap stocks. You may also in time be able to interpret the technical and comprehensive analysis and graphs presented by some online brokers and traders and on Small Cap Stock Alerts. By doing your own due diligence and analysis – getting critical information about companies – you may find that investment with an enormous gain potential. You might discover new and emerging companies with potential for rapid growth. I can only stress that by doing research there is always a chance of discovering a solid company where you might be able to get in early on an investment opportunity and add positively to your portfolio.
However the fact of the matter is there are no guaranteed results. Thus the more research you do and the more information you have on a listing company prior to making an investment, the better your chances of success – and it can be an educational as well as a rewarding experience.
If you are planning to invest in small cap stock, sign up for small cap stock alerts at Killer Penny Stocks and get the most up-to-date information about these risky but potentially rewarding investments.
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