According to the SEC (Securities and Exchange Commission), a 'penny stock" refers to "low-priced (below $5), speculative securities of very small companies." A penny stock is traded over the counter (OTC) through quotation services such as the OTC Bulletin Board or the Pink Sheets.

Most online brokerage firms will allow you to purchase penny stocks. Some examples would be Speedtrader®, Scottrade® and E-Trade®.

Not that much. Check with your brokerage firm for what the minimum amount is for an account setup and/ or stock purchase. Since penny stock investing is considered speculative, it is usually recommended to only invest a small portion of your overall investment portfolio. Many penny stock investors have started with a small amount and expanded their capital from there.

There are many websites out there that will help you track your investments. Yahoo Finance is a solid place to start.

Penny stocks can be shares of small companies that have great potential but are not followed by traditional stock brokers. In many cases, traditional brokers will not follow a stock unless it trades above a certain threshold, usually around $3. These low priced penny stock shares can reward investors who get in early with very substantial returns. Sign up today for our FREE penny stock alerts so you do not miss out on any of the best penny stocks.

Start by joining our FREE email list to receive alerts on the hottest OTC Bulletin Board and AMEX companies. Do your own due diligence on the company we alert you to and make sure you understand the company's business and its products or services. Read the company's press releases, reports and financial statements. Consult your registered stockbroker and financial advisor.

All investments involve risk and you should always consult with your registered investment advisor or stockbroker when considering investment opportunities. While considered more speculative than other investments, penny stocks also provide the opportunity for substantial returns.

We alert our subscribers to penny stock companies, listed on the OTC Bulletin Board and AMEX, that we believe have both short and long-term potential. Some of the things we look for in companies are: an experienced and proven management team, products and/or services with great potential, growth sector, existing clients or contracts, proven track record and more… (Note: We typically do not release picks on pink sheet companies due to the lack of readily available information.)

We are at times compensated for alerting our members to a certain company. However, we turn down the majority of the companies that approach us and we will only accept compensation from a company that we have researched and believe will provide our members with substantial opportunities for both short and long-term gains. If we do accept compensation for an alert, as required by the SEC (Securities and Exchange Commission), we would disclose who paid us, the amount, and the type of payment in our email disclaimer.