Penny Stocks: Secrets Revealed
Online Trading

Stock Market Information
line

To begin, we will start with some definitions to help understand some basic stock market information that is important to penny stock trading. The better you understand the stock market, the better prepared you are to start trading. These stock market investing basics need to be understood as a beginner. Each small portion may contain additional highlighted terms that are related. Just click on the term for more information. If you are already familiar with stock market basics, feel free to proceed along to the next section.
Links
spacer

What is the 'Stock Market'?

quotes-The "Stock Market" is a term used to describe the mechanism that enables the trading of company stocks. The market is made up of several 'Stock Exchanges' such as the NYSE, Nasdaq, Amex, and OTCBB. A stock exchange is where buyers and sellers come together to exchange their stocks.

When is the stock market open?

The stock market is normally open Monday-Friday from 9:30am-4:00pm eastern time. There are extended hours in the morning and afternoon, but these don't apply to penny stocks trading on the OTCBB or Pinksheets. Most holidays result in closed, or "half" days.

What is 'Stock'?

-Stock is a financial device that companies use to allow people to buy a portion of ownership in that company. A 'share' of stock is one unit of a set number of equal portions of the company. Companies sell 'Shares' of stock to raise money for various types of business development.

What is a 'Stock Broker'?

-A Broker is essentially a middle-man that acts between buyers and sellers of 'securities'. The stock broker acts to initiate and complete the transaction between individual buyers, institutions, and 'Market Makers'. To act as a broker for securities such as stock, a license is required. Check out the next page to find out how to get your own broker.

What is a 'Market Maker'?

-A 'Market Maker', or MM for short, is a brokerage or bank that is supposed to create an orderly market for a stock. Market makers create a market by maintaining a 'bid' and 'ask' price on each stock they are participating in. The market maker should readily buy or sell the stock when their quoted prices have been met by another party. Market makers are critical to creating 'liquidity' and efficient trading for each security they participate.

Can I see what 'Market Makers' are doing?

Level 2 Quote-To see the bid and ask prices that market makers are providing for a specific stock, you need a Level 2 (Level II, L2) quote. Level 2 quotes show each market maker participating in a stock, their current bid and ask, and the 'size' of their bid/ask. Understanding and interpreting Level 2 quotes is critical to improving your penny stock trading performance. Check out the links below for more information.

Links

What's Next?

-Now that you know some stock market investing basics, and what you need to start trading penny stocks, let's discover how to buy penny stock and select a stock broker that fits your needs.

Home <- Previous Page
Next Page -> Buy Penny Stocks

Google
 
Web TheThirdDimension.net
Copyright ©2007 TheThirdDimension.net All Rights Reserved.

Last Updated: 4/8/08
Sign up for our Newsletter Today!
Find Stock that will Double!

Menu/Home
Stock Market Information

Penny Stocks DefinedPenny Stock Company Actions
Finding a Hot Penny Stock
Develop a Penny Stock Investing Strategy
Penny Stock Trading Tools
Penny Stock Trading Books and Publicationsbar
Glossary

Level II Quotes

 

 

Penny Stock Brokers

 

 

News and Events

 

 

Contact Usbar

Site News and Updates

Find profitable pennies and other coins on Ebay today!