Canadian Penny Stocks – How Can You Buy Stocks in Canada and AOL

So you have heard of a lot of profits possible in trading penny stocks and you want a piece of action? Let us get the speed. A penny is part of a company's common stock, which is traded at a price of less than $ 5 and is traded through OTC. More simply, these companies are not listed on major exchanges such as the New York Stock Exchange, Nasdaq, Toronto Stock Exchange

So where do you buy them? If you are an American investor, you can have three options – (1) to buy a pink Canadian company, (2) open an account with a Canadian broker, and (3) open an account. Do you choose these options whether you use a broker or do it yourself. In the case of option (1), Pink sheets LLC publishes a list of companies available through them every day. If you want this route, you'd better do research and talk as much as possible because it is an unregulated secondary market, that is, no rules imposed by the SEC. In the case of the other two options, the company is usually listed on the TSX Venture Exchange until they meet the requirements of the TSX (TSX) listing. In addition, brokers through which you buy a penny stock may be able to provide additional research services, but due diligence is still necessary. In the case of options (1) and (3), you avoid the cost of currency exchange at the time of sale

The other two issues that investors should be aware of – liquidity and trading difficulties. Liquidity, you may already know, means that we can buy and sell stocks in a relatively short period of time. The good news is that most stocks traded on Pink Sheets are traded daily. This is definitely a place where brokers' advice is useful. So far, trading difficulties you as an investor should keep in mind that as long as you place a limit order, know your market and know the trend, you are in good condition