Call: 0123456789 | Email: info@example.com

Hello everyone welcome to our must know list of penny stock terminology defined in everyday language

Hello everyone welcome to our must know list of penny stock terminology defined in everyday language


1.The Ask – The price someone is willing to sell their shares for

2.The Bid – The price someone is willing to buy the shares for

3.The Size– The amount of shares someone wants to sell or buy

4.The Market Maker ( MPID)- The broker who makes the transaction for us..on level 2 screen it looks like this

 NITE (mm)   5,000(size)  .16(bid)       .17(ask)   5,000    ATDF(mm)

So market maker NITE (4 letter initial of firm name) is willing to buy 5,000 shares(or more because they are not required to show the actual size over 5k) for 16 cents.

Market maker(ATFD-ameritrade) wants to sell 5,000 shares( or more) for 17 cents.

5. The Spread–  the difference between the Bid and Ask ..as in the above example .. 1 cent on this execution

6. Volume – The amount of shares trading hands each day.. buy and sell

7. Level 2 – subscribe to it on your online discount broker site if you haven’t yet ..it allows you to see bid/ask/size as the mm’s buy and sell in real time. You’ll see the bids and asks stacking and you will Learn and Earn.

8. Time and Sales-  gives you the time the trade was executed ..the size(amount of shares traded) and the price..It’s important to see the sizes because in the penny stock world the mm’s,bigboys,insiders will print small  sizes to get the price going up..traders on level 1 only see the last price which often times is deceiving.

9. The Gap up-  In penny stocks you will often see a significant price increase or decrease from the close to next day open without any trades being executed. Ex. ABCD closes on monday at .10 then monday night or before the bell tuesday ABCD comes out with great news or it getting promoted or both…well..people don’t want to miss it so they start putting in pre market orders which make the price GAP UP…so now it opens at .12 … a 2 cent gap ….this is great for sellers ..but buyers beware of the GAP UP!

10. Liquidity- when the stock is trading with huge volume it is said to be liquid (easy to get in and out of)…in the pennies be careful if the stock is not liquid you won’t be able to sell out of it.

11. The Float- The total number of shares available or “in the market” that can be traded..the float is very important ..low float = volatility (chances for big gains and losses)

12. Outstanding shares- The amount of tradable shares in the market(the float) plus the restricted shares held by the company insiders that can’t be sold until a certain date.

13. Market order- when you place a market order it will guarantee that your buy or sell order will get filled…but at what price? (the best price). But that might not be the price you wanted. You can use market orders on stocks that trade with high volume.(like google or apple)..be careful in the pennies!

14. Limit order-  Now your talking!  a limit order allows you to set the price  you want to buy or sell your stock…. or a better price if it goes up or down before it gets filled. You can also limit the time til cancelled. You use limit orders on low volume highly volatile stocks(pennies).

15. Shorting- your betting on the stock to go down…you have a broker(if you can find one) that will let you borrow from his account or someone else’s at a certain price (let’s say 100 shares at .50 cents)..he sells them for you and you get $50 bucks in your account. But now you have to get those 100 shares back to the broker. So you have to buy 100 shares in the open market. If you buy the 100 shares back (cover)at .10 cents that’s only $10 bucks..so you made $40 bucks and returned the 100 shares to your broker. Done!  NOT SO FAST BUDDY…it is very difficult to find a broker that will short penny stocks…plus you’ll need a lot of money in your margin account. And you won’t be able to borrow enough shares to hold a significant position to make it worth it..BOTTOMLINE. Most people outside of the market makers don’t short penny stocks.

penny stock terminology

16. Market Capitalization- (market cap)- since this is pennyland we deal with small cap stocks. Under 1 or 2 billion dollars depends who you talk to. What we mean by that is the outstanding shares(see above for definition) multiplied by the current share price. So pick your favorite penny stock, go to their investors website, check out their outstanding shares number which could be written as total issued or total outstanding ..then do the math. Is the company your investing in worth that much?  In the pennies the companies are usually way overvalued ….but who cares ..as long as there are people willing to buy and sell (usually because of big news or a promo)… whatever the reason …you can make money!

17. OTC minimum quotation tier structure (the size-or amount of shares the market makers have to display on level 2) currently it is 0 to 50 cents they have to show 5,000 shares minimum..51 cents to a dollar 2,500…1.01 to ten bucks 500 ..that’s all we need for the pennies.

18. NEW OTC minimum quotation tier structure beginning November 5, 2012 is …0001 to .0999 (0-10 cents) they now must show 10,000 ..little bump up but will make no difference because 10,000 shares at under 10 cents is nothing ..market makers will still hide and glide. Next is 10 cents to 20 cents they show 5,000 (no change at these levels).. then 20 cents to 50 cents minimum drops to 2,500(these will be stacking up) then 50 cents to a dollar only 1,000 minimum(less than current) then one dollar to 175 dollars they must show at least 100.

19. DTC Chill- The depository trust and clearing corporation imposes trading restrictions on brokers due to regulatory, compliance or other issues with the security. In layman’s terms ..the DTC halts electronic transfer of stocks. Since every trade is done electronically ..the stock basically stops trading. They do this in the pennies because of individuals manipulating the stock, announcing false company news(lying), issuing illegal shares etc. (dirty business practices). What a headache for the company and the shareholders as it takes many months to get cleared.

RSS Stock Market

  • Icnaf- X-spray Products October 11, 2018
    #pennystocks ICNAF has more exciting news out! Expanding their partnerships and distrubiton network now in Colorado as well! https://finance.yahoo.com/news/integrated-cannabis-company-inc-announces-113000566.html VANCOUVER, British Columbia, Oct. 11, 2018 (GLOBE NEWSWIRE) — Integrated Cannabis Company, Inc. (CSE: ICAN, OTCQB: ICNAF) (“Integrated Cannabis”), is pleased to announce a retail focused collaboration with New Age Farm, Inc. (CNSX: NF, OTCMKTS: NWGFF, […]
  • Marijuana Stocks to buy updated every month October 8, 2018
    #pennystocks Marijuana Stocks We update our marijuana stocks page frequently. Make sure you read the whole page I am sure you will find all the information helpful! Scroll down to see the top stocks we are watching this month. Welcome to our website! We are the most trusted source when it comes to marijuana news as […]
  • Daily Penny Pick Stock By Penny Stock Expert October 5, 2018
    #pennystocks Penny stocks, stock picks and message board Join the penny stock discussion on our stock message board. it’s an exciting fast paced stock picking 8,827: wfwl featured pick on watch Add a url Title : penny stock pickhot penny stockfree list of penny stock. description : investing and brokerage guidelines and tips for penny […]
  • Bond Investing Penny Stock Investing Investing 101 Com By Penny Stock Expert October 5, 2018
    #pennystocks Stock investing :: review Candlestick chart investing stock; bond investing stock; household stock market investing basics.wow, the 101 investing market stock is investing link stock suggest.hello, some penny stock investing is Interactive investing solutions presents: Check out this site: uranium 101 this isn’t to say that junk-bond investing is however, while the stock market […]
  • Choosing a Broker : Penny Stock Newsletter October 5, 2018
    #pennystocks   If you’re interested in penny stock investing, setting up a brokers account is essential. Your broker will be the one who will carry out your trading decisions by doing the actual job of filing the paperwork and executing your trades. Signing up with a brokerage also allows you to trade on margin, meaning […]
  • Global Vision Holdings, Inc. GVHIB October 5, 2018
    #pennystocks Global Vision Holdings, Inc. (GVHIB) Sitting here minding my own business and enjoying the cloudy day and cool breeze when a portal to another place and time opened dispensing this next great pick onto my desk. Okay, it was just the door into the alternate room (could be an alternate universe of sorts), all […]
  • Penny Stocks for Dummies October 5, 2018
    #pennystocks Penny Stocks for Dummies   Dummies is a very harsh word to use so how about we change the title from Penny Stocks For Dummies to The Newbie’s Guide To Penny Stocks.  Regardless of what we call it if you are new to stock investing in general or just new to investing in penny […]
  • Penny Stock E By Penny Stock Expert October 5, 2018
    #pennystocks Small & micro cappany stockrmation & reviews – thenewsgate Sign up for our e-mail watch to receive free investment advice a true penny stock will have less than $4 million in tangible assets and will Small & micro cappany stockrmation & reviews – thenewsgate Sign up for our e-mail watch to receive free investment […]
  • Penny Stock Recommendations October 5, 2018
    #pennystocks Penny Stock Recommendations Everywhere you look there are places saying they have the best penny stock recommendations but the truth is there is no best penny stock recommendations and like all of them they are just recommendations. Before you can even consider using a recommendation you still have to research the stock pick and do […]
  • Best Penny Stock Broker By Penny Stock Expert October 5, 2018
    #pennystocks   NEW YORK – The major US stock indexes opened lower Friday after banking behemoth Citigroup and cellphone giant Motorola both Motorola beat by a penny. So did Citigroup,” said Dick Green, an analyst at Briefing.com. “Companies that disappoint in any El Paso receives $28M from dispute Relationship with Spectra and is pleased to […]