# When are OLS estimators BLUE?

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For Classical Regression Model the OLS or Ordinary Least Squares - estimators (or the betas) are BLUE (Best, Linear, Unbiased, Estimator) when :
1. The regression is linear in the coefficients, it is correctly specified and has an additive error term.
2. Mean of the error term is zero. (Include a constant term in the regression (B0 which will force the mean to be zero)
3. The independent variables are not correlated with the error term. (If they are correlated then the betas will be biased.)
4. Observations of the error term (the residuals) are not correlated with each other.
5. The error term has a constant variance (Homoskedasticity)
6. No independent variable is a perfect linear function of any of the other independent variable. (If this is true - multicollinearity will occur)
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# What are penny stocks?

A Low-priced, Speculative Security The definition of a penny stock varies depending on who you ask. Some consider any stock trading under \$5 to be a penny stock while others consider any stock trading under a dollar to be a penny stock. These stocks are often traded off of the major exchanges and ( Full Answer )

# How do you trade penny stocks?

How To Invest Wisely in Penny Stocks? \n. \nIf you are a new to investing, you have to get a lot of information about penny stocks, how to invest wisely in it, etc ...\n. \n Very, very carefully \n. \nPenny stocks have to be watched like a hawk. They cost so little, even a small dip in thei ( Full Answer )

# How To Invest Wisely in Penny Stocks?

Investing wisely has a lot to do with knowing when to buy a penny stock and doing your Due Diligence. I answered many questions here related to this general question, make sure to review my past postings. I'll go over Due Diligence as a major focus in wise investing. Doing your Due Diligence, si ( Full Answer )

# How do you invest in Penny Stocks?

Investing in penny stocks works just the same as investing in any other stock. You buy the stock using its symbol Example: XYZ is the symbol for Xray Yellow Zoo Inc. (company is not real) You open up an account with a broker that does not penalize you for investing in microcap or penny stocks, place ( Full Answer )

# How do penny stocks work?

Penny stocks work just like any other stock except that there are some differences you should be aware of. The definition of a penny stock varies depending on who you ask. Some consider any stock trading under \$5 to be a penny stock. Others consider any stock trading under \$1 a penny stock. These st ( Full Answer )

# Who started Penny Stock Fraud?

Greed started penny stock frauds from occurring. In any business that involves money, there exists people that are greedy and really do not care about the person that they are doing business with. Some say the word "care" does not exist in the world of business. "its not personal, it's just busines ( Full Answer )

# How to become a penny stock company?

The over-the-counter bulletin board (OTCBB) is a regulated quotation service for over-the-counter (OTC) securities. The securities that are listed on the board are not ones that are traded on the Nasdaq or any other securities exchange; therefore, a company is not "listed" on the board, just quoted. ( Full Answer )

# What is the difference between a blue chip stock and a penny stock?

A "blue chip" is the nickname for a stock that is thought to be safe, in excellent financial shape and firmly entrenched as a leader in its field. Blue chips generally pay dividends and are favorably regarded by investors when a "penny stock" is one that cost less than \$5 a stock and are sold over t ( Full Answer )

# Why are penny stocks risky?

Think about it this way. Sure a stock can go from 7 cents to 14 cents which would mean you can double your money. However, the stock can just as easily go to 0 making you lose all of your money. Stocks that trade for pennies did not get there because the company was doing well.

# What are some good penny stocks?

Penny stocks are generally pretty volatile and very hit or miss. You generally just pick one that you have a good feeling about and hope that it hits big. I would suggest using a small cap rating system that tells you the most fundamentally sound small cap stocks (not quite penny stocks, but not 100 ( Full Answer )

# What are 15 penny stocks you can invest in?

You can invest in any 15 penny stocks you want to invest in...there are many to choose from. Read more, below.

# What are all penny stock investing websites?

That is an extensive list: Start here. Make sure to open a new tab. Copy and paste this URL: stockpromoters.com/view-stock-promoters-by-services.aspx You will find a list of Stock Promoters by services. Hope this answers your question. " StockPickster over and out "

# Was Google ever a penny stock?

This is a very common question. Not sure why that is the case. But, Google has never been a penny stock. In fact Google's stock price has never even been below \$100 a share. Very few companies that start out as penny stocks ever make it to one of the big boards. In today's environment the number of ( Full Answer )

# What is the best penny stock website?

There are many penny stock websites. The best penny stock website will be based on the type of investor you are. You need to understand the different levels of penny stocks in order to understand which one suits you best. Generally, the higher the risk a penny stock is, the more reward you may gain ( Full Answer )

# How do you pick hot penny stock?

It depends on what kind of information you have. Learn a few tips and tricks about the stock market and penny stock companies and you'll become a better penny stock trader in no time. Its best to learn the tips and tricks from a guide that provides strategies and information so you can be more su ( Full Answer )

# Are Penny Stocks Profitable or Risky Investments?

if you,re looking for some good information about penny shares, Iwould recommend that you google penny stocks. The short answer is that they are a very risky investment.

# What is the meaning of 'penny stock'?

In the United States, penny stocks are common shares of small public companies that trade at less than \$1 US. In some countries, similar shares of stock are known as cent stocks. Hope this answers your question. "StockPickster over and out"

# Why are penny stocks so risky?

Most companies are required to file statements about their business including financial statements that show their balance sheet and income statements. Exchanges such as the OTCBB and especially the Pink Sheets have much more lax requirements so there is much less certainty in the viability of the c ( Full Answer )

# How do you get your company on the penny stock list?

The over-the-counter bulletin board (OTCBB) is a regulated quotation service for over-the-counter (OTC) securities. The securities that are listed on the board are not ones that are traded on the Nasdaq or any other securities exchange; therefore, a company is not " listed " on the board, just qu ( Full Answer )

# What is the best penny stock for 2011?

The best penny stock for 2011 is BGEM (BLUE GEM) although they distribute mostly in Florida they have a weapon that will make them richer then rich. This is TITLE of course the new all natural sports drink. Better tasting, better for you sports drink. This company is very promising and Title is ver ( Full Answer )

# When was google a penny stock?

Google has never been a penny stock. In fact Google's stock price has never even been below \$100 a share. Very few companies that start out as penny stocks ever make it to one of the big boards. In today's environment the number of penny stocks that will succeed is even smaller because small start u ( Full Answer )

# How do you do Due Diligent on penny stocks?

Doing your Due Diligence, simply means doing your homework on a company before investing in its stock. You really want to look at the company's financial statements to see if the company is doing well. If it is on the verge of bankruptcy, you really should stay out of investing in it. Due Diligence ( Full Answer )

# Are penny stocks safe?

Stay Away from Penny Stocks We are all attracted to Penny Stocks. These stocks cost us around Rs. 10 or 20 each and even a small investor can afford hundreds of thousands of shares. Some of them even blow the roof and grow at over 50 or 60% in a matter of days. However, such rises may be purely b ( Full Answer )

# Where do you purchase penny stocks?

Investing in penny stocks works just the same as investing in any other stock. You buy the stock using its symbol Example: XYZ is the symbol for Xray Yellow Zoo Inc. (company is not real) You open up an account with a broker that does not penalize you for investing in microcap or penny stocks, pl ( Full Answer )

# Can you make a profit with penny stocks?

Yes, if you know what you are doing. There is a learning curve that you must walk... not run, before investing in penny stocks. Most people stay out of penny stocks due to their high volatility. You can lose it all, just like you can make a huge profit, if you start out and simply break even, you ar ( Full Answer )

# Are penny stocks good for beginner investments?

Penny stocks are way riskier than Blue chips. Definitely not a beginner stock. No doubt if you are buying in small quantity, then your losses arent much. But if you are in the market to make money, buy blue chips first.

# What are some companies that you can buy penny stocks in?

If you are new at trading, then you may want to consider starting with penny stocks. They will help you learn about the stock market and are less than five dollars a share. A couple companies you could invest in are NASDQ, AMEX or NYSE.

# Are penny stocks a good investment?

From what I understand penny stocks seem to be subject a lot of different types of fraud such as Artificial inflation, sometimes are also sold illegally overseas. I would get some advice from a stock broker before you invest.

# What are the disadvantages of buying penny stocks?

The main disadvantage of buying penny stocks is that the value of the stocks fluctuate enormously on a day to day basis. Penny stocks may also be very hard to sell once you own them. To benefit from penny stocks, one must be very knowledgeable and experienced with buying and selling stocks, so penny ( Full Answer )

# What are penny stocks and are they actually only a penny?

A penny stock is one that is relatively cheap and does not actually mean that the stock is one cent. The penny stocks are usually high risk but high reward.

# What are the advantages and the disadvantages of buying penny stocks?

The main advantage to buying penny stocks is that they are so cheap. One also has to consider the downside. The major disadvantage to penny stocks is that these stocks often fail.

# What are the benefits to buying penny stocks?

The benefits to buying Penny Stocks is that the market has no place to go, but up and you can easily double or triple your profits in as little as a year.

# What is the best penny stock to invest in?

The best penny stock to invest in is the one going up in price tomorrow. I know this doesn't really answer your question, you probably want a stock to invest in. Here's a hint to finding a great stock with the potential for upward movement. Stock is at its lowest point in the charts for over the ( Full Answer )

# What is the 'penny stock of the day'?

The penny stock of the day is the one going up tomorrow. I know this doesn't really answer your question, as you probably want a stock to invest in. Here's a hint to finding a great stock with the potential for upward movement: Stock is at its lowest point in the charts for over the past 12 month ( Full Answer )

# How risky is it to buy penny stocks?

Penny stocks are very risky. People buy them to gamble on the chance that a new company might make it big, but the overwhelming majority of them do not. Most penny stocks have little to no company history so it is difficult to determine how good of a company you are investing in, and once you buy th ( Full Answer )

# Good penny stock newsletters and picks?

newsletters are good but you gotta play them right. penny stocks are very risky. try StockWiky.com its a penny stock alert and penny stock newsletter.

# What are the top ten penny stocks?

The top ten penny stock to invest in are the top ten stocks going up in price tomorrow. I know this doesn't really answer your question, you probably want a list of stocks to invest in. Here's a hint to finding a great stock with the potential for upward movement. 1. Stock is at its lowest point ( Full Answer )

# How do you buy penny stocks online?

looking for the best place to buy shares online can be daunting butthere are some good sites with frew information on whats hot andwhat to look out for.

# How can you sign up for penny stock?

Best way to find the hot penny stocks is to sign up for a newsletter service. Best one i know of is penny stock whispers.

# What are the advantages of penny stock picks?

The true advantage of penny stock picks is the low cost of investment. It is more favorable for someone who does not have large sums of money to invest. It also allows new investors to explore the markets without risking the loss of a large sum of money.

# Is the Amazing Penny a credible penny stock newsletter?

I have found the amazing penny to be one of the most trustworthy penny stock newsletters on the internet.

# How do you play the penny stocks?

Basically what you do is you wait for buzz to pick up and some buy volume to come in before you pull the trigger and buy shares in the company. Penny stocks are not like regular stocks. Stocks that have the buzz and momentum are the ones that have a better chance of being winners. It's best to join ( Full Answer )

# What is the difference between a stock and a penny stock?

A regular stock is one that has proven itself and has grown much past the micro-cap stage. They are on an exchange like NASDAQ and as a company are worth much more than a micro-cap company (penny stock). It's good to know that Penny stocks do not move with the over all general direction of the marke ( Full Answer )

# How can you invest in penny stocks?

Penny stocks, usually called common stocks, can be invested in for as little as \$5 a share either at a brokerage firm or online. Consultation with a broker who specializes in penny stocks is recommended.

# What are the characteristics of a penny stock?

Taken directly from the US Securities and Exchange Commission, a penny stock is a "security issued by a very small company that trades at less than \$5 per share." Penny stocks can be more difficult to sell than other stocks and thus carry a certain risk. Thus, a broker-dealer is required by law to ( Full Answer )

# How can Canadian penny stocks be bought?

Canadian penny stocks can be bought through a financial brokerage office. Also an online platform service can be used. Detailed information about Canadian penny stocks can be found on the website All Penny Stocks.

# Where can one by penny stocks online?

Penny stocks are stocks that cost less than \$5 to buy and sell. The best online brokers inclue E*Trade, Fidelity, Scottrade, Charles Schwab, and TD Waterhouse.

# When are top penny stocks the cheapest?

The stock market changes from hour to hour. To keep track of the current stock market values it is a good idea to follow a live stock feed. HotPennyStocksFinder is a great website to keep track of the market fluctuations and deals to be had.

# What is the definition of penny stock fortunes?

There doesn't appear to be a common definition of penny stock fortunes. Penny stock means different things to different people. However, the typical penny stock is a small business that has speculative shares, so buying is a risk because of their lack of liquidity.

# What are penny stock recommendations?

Not to buy any. Penny stocks (which today means any stock selling for less than \$5 per share) are very volatile and it's too easy to lose your investment.