The stock markets like the New York Stock Exchange have very
about which companies can actually trade on them. In addition,
monitor the company for what it is before allowing the company
traded. What does that mean? It means that companies such as
trade with penny stocks do not meet the criteria of the stock
market to the
degree that allows them to participate.
In other words, companies that trade in penny stocks do not
have the assets, the business history or the net worth to be
traded on the
New York Stock Exchange or on other stock markets. Thus, they
Penny stocks are not traded on the stock market but they are
still traded. In
fact, they are traded as part of what is called the OTC. OTC
stands for Over
the Counter markets.
OTC markets can be part of the NASDAQ which is the National
Securities Dealers Automated Quotation. The NASDAQ National
NNM is made up of part of the OTC market.
Yet, there are some changes there, too. Often, the NASDAQ
rules, so to speak, allowing in penny stocks when they did not.
Or, they may
decide to change from allowing to not allowing any longer.
Needless to say,
the number of penny stocks that are on the NASDAQ in any given
So, at this point, you know that you can purchase penny stocks
on the OTC
markets. These would be non-NMN penny stocks. In addition, you
purchase them through some parts of the NASDAQ market as well.
In just a
minute, we will touch on the third method of investing in penny
besides these two methods.
The Benefits of NASDAQ