BULLETIN BOARD STOCKS– HIGH RISK CAN EQUAL HIGH PROFITS IF YOU RESEARCH AND CHOOSE WISELY

If you’re interested in the stock market but don’t know where to start, the odds are you’ll come across Bulletin Board Stocks before too long. These investment products can look very attractive on the surface, as they’re cheap to buy and are often hyped on internet message boards, in spam emails, and even over the telephone, so it’s easy to be seduced by the promise of a fast and substantial profit.

The reality rarely lives up to the hype. If you live in the real world, you’ll be aware that there are many scams dishonest people use to gain advantage, and without due diligence and care, you could find yourself on the receiving end. Before you make any decisions regarding Bulletin Board Stocks, be sure to research the company you’re interested in thoroughly to minimize the risk of loss.

Over The Counter Bulletin Board exchanges, like the Pink sheets, are not regulated in the same manner as major exchanges such as the NASDAQ and the NYSE. The reporting requirements of companies floating stocks over these exchanges are minimal or non-existent in some cases, so information on these companies can be severely limited. This means that it’s hard to gauge what a good Bulletin Board Stock might be, but with diligence and careful research, it’s possible to stack the odds in your favor.

Research should begin with whatever information is publicly available about the company in question, but this can be minimal in the case of Bulletin Board Stocks, so beyond that, the only answer is to be creative and look for sources of information that are more obscure, such as archived newspaper articles, television commentaries and interviews, general message board gossip (though it’s necessary to question anything you read on a message board), and if it’s feasible, even visiting the premises of the company.

A good investment would mean the company is up-and-coming, has a product or service that will be in demand, owns assets of some kind, has a solid management team, and is preferably not up to its neck in debt. Shareholder numbers and trading history of the stock is also very useful information when contemplating buying Bulletin Board Stocks from the Over The Counter market.