Questions and AnswersUnderstanding Penny Stocks

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Miscellaneous Questions

How can I find out if my old stock certificates have any value?

To address this specific question I have included a full section on this, entitled, Old Stock Certificates.

I own some stock certificates. Can I transfer these to my broker?

Certainly, assuming that the companies still have any trading value. Your broker can explain how to transfer the stocks over to them, after which you will be able to trade the shares.

Which penny stock picking services can I trust?

There are hundreds if not thousands of stock picking services out there, and we are sad to say that most of them are dishonest, misleading, or ineffective. The majority take compensation from the companies they promote.

Make sure to ask the questions that I have provided in the section, Benefits to Look for in a Penny Stock Picking Service.

As well, read the discussion on Dangers to Watch Out For.

Of course, I am supporting the services of PennyStocks.com, a company with which I am closely affiliated, and which is the sole sponsor of this book. PennyStocks.com does not receive any form of compensation from the companies they research, and their picks have done so well that they have quickly become the predominant service for penny stock picks.

I suggest deciding for yourself after some comparison. Hopefully you will at least visit PennyStocks.com to get an idea of what we offer.

Can I buy shares directly from the company?

It is possible, but we strongly discourage this practice as is described in the earlier section, Where Do Penny Stocks Trade?

Should I invest in Canadian penny stocks?

It depends on your trading objectives and style.

Certainly there are many more penny stocks trading on regulated exchanges in Canada, so you benefit from a greater choice and a higher standard of reporting requirements.

At the same time, you will be subject to higher commissions from your broker and may not have access to the same information that is available for U.S. based penny stocks.

Certainly there are a great deal of Canadian penny stocks to choose from, but if you are not able to find the best penny stocks to invest in among the U.S. markets, what makes you think that you will be able to do so on foreign exchanges?

Should I invest in international penny stocks?

Again, this depends on your own motivations and objectives. We do not see any need for U.S. investors to look overseas for penny stocks, unless they have some compelling reason to do so.

Why does a stock get halted, and what does it mean?

A stock can be halted either voluntarily by the company itself, if they have some significant news to release that may impact the share price, or by the parent exchange due to negative reasons like failing to provide required data to the exchange, or failure to meet listing requirements.

When a stock is halted you will be unable to trade shares. Often, if the halt is for the release and dissemination of a news item, the stock will start trading again at a different price (higher or lower accordingly) than it was at when trading was interrupted. Stocks can stay halted for a matter of hours, or for several days. In some cases, especially if the news is very bad, the stock may remain halted for weeks, or never resume trading at all.

You can review my explanation of halted stocks in this bonus section of Understanding Penny Stocks.

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