Penny Stocks For Dummies^®, 2nd Edition

      Published by: John Wiley & Sons, Inc., 111 River Street, Hoboken, NJ 07030-5774, www.wiley.com

      Copyright © 2016 by John Wiley & Sons, Inc., Hoboken, New Jersey

      Published simultaneously in Canada

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      Library of Congress Control Number: 2016934645

      ISBN 978-1-119-19182-7 (pbk); ISBN 978-1-119-19181-0 (ebk); ISBN 978-1-119-19180-3 (ebk)

      Introduction

      Some of the greatest companies started out very small, with their stocks valued at less than five dollars per share. In other words, they started out as what the investment world calls “penny stocks.” As those businesses grew in size, many of their shareholders grew in wealth along with the companies.

      Few paths to significant and rapid wealth creation are as effective as investing in the right kinds of low-priced penny stocks. Excellent companies, regardless of their size, will always be able to provide their shareholders with impressive investment gains.

      With increased opportunity, though, you have increased risks. Many people have been stung by those risks, and subsequently penny stocks have gotten a bad name in some investment circles. In almost all situations in which investors lost money, however, they could have easily avoided the downside if they had only followed the tips and suggestions in this book.

      By showing you how to sidestep the risks, I clear the way for investors like you to profit from high-quality penny stocks. I help you find companies that have low debt loads, strong management teams, expanding market share, growing revenues, and game-changing intellectual property.

      I wrote Penny Stocks For Dummies for two reasons. First, I want to help you – and investors like you – steer clear of the common (and easily avoidable) mistakes in penny stock trading. Second, I can show you how wonderful it will feel to get in on a great company early and build significant wealth from a small investment as the shares multiply in value many times over.

      In this book, you get the straight goods, free of any boring theories, complicated strategies, or inane details. In short, I tell you what you need to know to become a successful penny stock trader. Among the topics I cover are:

      You can zip straight to the sections that interest you. I promise you will find what you want to know very quickly, and I won’t subject you to financial mumbo jumbo or unnecessary details along the way.

      Whether you benefit from sidestepping all the junky investments out there or you profit big by finding really excellent (yet still undiscovered) stocks, this book has something for you. And the beauty is that the information you need is just a few page-flips away!

      Feel free to skip the sidebars that appear throughout the book; these shaded gray boxes contain interesting info that isn’t essential to your understanding of penny stocks. The same goes for any text I mark with the Technical Stuff icon.

      Within this book, you may note that some web addresses break across two lines of text. If you’re reading this book in print and want to visit one of these web pages, simply key in the web address exactly as it’s noted in the text, pretending as though the line break doesn’t exist. If you’re reading this as an e-book, you’ve got it easy – just click the web address to be taken directly to the web page.

      We haven’t met, but I bet you’ve made some assumptions about me. For instance, you probably think that I’m a nerdy financial type and that, because I’m involved in the stock market, I’ve always been a good investor. Believe me, I really wish that were true. (The part about being a good investor, not the nerdy part.)

      Well, I’ve made a few assumptions about you, too. Here they are: