Where Do Microcap Stocks Trade

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Microcap Stocks Graph

Trading stocks and shares has been a major source of wealth creation for hundreds of years. And whilst the methods have changed over the years, the idea of buying shares in growing companies has never changed. Microcap Stocks or Penny Stocks are stocks in companies that are worth between $50 million and $300 million. They are the hundreds of small companies that make up the breadth of the economy and employ thousands of people. These stocks tend to be more lucrative that those bought and sold in nano stock companies. And certainly easier to get started in than the larger corporations.  By trading penny stocks you are securing a foothold in the financial market for a relatively small amount of money. Not only are these companies comparatively low cost options to start trading stocks in, they are some of the most promising and vibrant companies around.

 

So if you are thinking of trading stocks using Microcap Millionaires and need to get started. Where would you find them?

 

OTC or Over The Counter Trading

The stock exchange was design primarily as a form of assurance, liquidity and overall safety when trading stocks. The benefit of this is a uniform way of trading and also transparency since the prices are being quoted openly for all to see. And the trade is being conducted publicly. Over The Counter stocks are a bilateral contract. Meaning that the stock price, quantity and quality is only divulged between the buyer and seller. With the obvious exception of the trader or banker negotiating the trade. Because there is no requirement for transparency. The two parties may agree on an unusual quantity or price. It is a private contract. The prices for these stocks are quoted directly in the Pink Sheets or the OTCBB.

 How OTC Trading Works

NASDAQ or AMEX (American Stock Exchange)

There are some major differences between the Over The counter trade and the exchange trade. For  stock to be entered into the exchange it has to have a certain uniformity. It has to be quantified and priced at a uniform rate to be able to pass through the exchange. Not only this, but the prices are shown publicly so absolute transparency is guaranteed. The stock exchange also creates a reasonable amount of liquidity and security. Should either of the parties trading default, then there are measures put in place to secure the trade. Unlike Over The Counter trading where should either party default, then the trade is over and money could be lost.

 

So as you can see there are a few different ways to trade penny stocks. The most important thing is to find a trader or facilitator to see the process through to fruition. When trading stocks using Microcap Millionaires you will want to execute trades quickly so do your homework to find the best solution for you.

 Microcap Stock Trading

 


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