[mage lang="" source="flickr"]how do penny stocks work[/mage]
Is this how penny stock works?
If I buy a penny stock for ex. RSMI.OB (250,000 shares for $130) which currently stands at 0.0005 – Now if it goes bankrupt or goes down to 0.00 . Does that mean I only lose about $135?
Also, can I immediately sell this stock at any time, or do I have to wait for someone else to buy it from me?
RSMI – http://finance.yahoo.com/q?s=RSMI.OB
I used this stock calculator: http://calcs.cu-secure.com/calcs/stockcalc.html
Yes you can loose everything it cost you.
You could try to sell the stock, but with penny stocks, especially in a down markets, there may not be many buyers. or any at all.
In the OTC market, market makers do not have to step up and buy.
this is the price you pay for trying to trade pennys stocks
How Penny Stocks work