The mention of penny stocks often instill thoughts of instant riches or gain in the ears of newbie investors. In other investors, it brings about fear and pessimism. Either way, penny stocks have more depth now than ever before, due in part to the fast-flow of information in the internet age, and the ability for traders to easily trade securities of these nature.

Penny stocks (or MicroCap stocks) are defined as stock's whose share price are below $5.00, and usually appear on the Over-The-Counter Bulletin Board (OTC BB) or Pink Sheets Exchanges. There are other exchanges as well, but most experienced investors decide to play on either of these two when they first are getting started with investing.

The main difference between the Pink Sheets and the OTCBB, is simply that .PK (Pink Sheets) stocks do not need to report to the SEC any company information, whereas OTCBB stocks are real companies, with full reporting and disclosing to the SEC and other agencies.

You can learn more about Penny Stocks by visiting the following links:

Penny Stock Information