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Scottrade will allow you to buy stock under a dollar otherwise known as penny stocks. If you are trying to place a market order for these stocks you will get a message telling you that market orders for this stock will not be permitted. This is simply asking you to place this trade as a limit order. Change your order entry to a limit order and list the most you would be willing to pay for this stock. This is an added level of protection for the investor so that your order does not fill at a price higher than what you might have been expecting. A few cents on a penny stock trade could have a significant effect on your investment. Also, stocks trading under a dollar are unmarginable so this may effect your trade if you are using a margin account. Even if you do not use margin you may still get a message saying "You have insufficient funds" this may be the result of restrictions placed on a recent deposit. There is a three day hold on Money Direct (ACH Deposits) when purchasing unmarginable securities. During the first three business days following those deposits you may purchase stock over four dollars a share (marginable) but you may not purchase stock under four dollars a share (unmarginable) until the deposit has cleared.
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Why is 5-dollar level so important in stock investing?
Perceived Risk - There are almost no companies that have gone public at a price below 5-dollar level. Thus, for a company that trades under $5 there is a big chance that some serious operational or financial problems have accrued in the past or recently, and there is plenty of statistics suggesting that $5 stocks frequently go to zero.Margin - Margin is a line of credit given to an investor so that they may make investments in amounts larger than their current funds would allow. This allows investors the ability to leverage their current holdings and make larger investments hoping that the return will be larger than the interest for the loan. These investors are taking on a larger amount of risk and so are the firms that loan the funds to the investor. Because of this most firms deem stocks under 5 dollars to be unmarginable. This means that they will not extend a line of credit on investments that are trading at less than 5 dollars. They do not feel that a stock trading under 5 dollars is good collateral. Some set the mark higher or lower but 5 dollars is the most common. They do this because of the higher risk associated with lower priced stocks. Brokerages worry that they may not be repayed if substantial losses are realized in a short period of time. These facts make unmarginable stocks or stocks trading under the 5 dollar mark less attractive to the investment public including institutional investors and hedge funds.Penny Stock Notoriety - A "penny stock," according to SEC interpretation, is an equity trading for less than $5 a share that is not traded on the listed markets of the NYSE, AMEX, or NASDAQ. This perception of riskiness in sub-$5 dollar stocks outside the major exchanges has definitely influenced the perception off all sub-$5 stocks, even those highly liquid and more transparent exchange traded stocks.Note: Many consider penny stocks to be stocks that trade for less than a dollar which are listed in cents (pennies) as in .87 cents or pennies.Institutional Investors - Many mutual funds' charters directly prohibit their managers from investing or holding penny stocks (those traded on the OTCBB and pink sheets) and generally stocks under $5 dollars. However, mutual funds are not obligated by any regulations to have such clauses and there are mutual funds that specialize in penny stocks.Government Influence - To the extent that municipal, state, or federal pension funds' charters might prohibit their managers from investing in stocks (or holding stocks) below 5 dollar level, we can talk about government involvement in discouraging investments in stocks trading below $5.Retail Constraints - Many brokerage houses and investment professionals strongly discourage trading in speculative stocks. Often their customers must sign extra paperwork acknowledging that they are aware of the risks of trading such stocks.See the related link below for an interesting article on the subject.
Where can one buy cheap stocks?
One can buy cheap stocks by buying penny stocks without a broker. A penny stock is a publicly traded stock that trades at a very low price, usually under five dollars.
What does it mean to liquidate your stocks?
When you liquidate you stocks, it simply means that you are selling all of them. The term liquidate can also be applied to businesses. When a business liquidates, they are in the process of selling everything that is under its ownership.
Under the 5 Best Online Trading Sites in 2013 what is the last trading site on the list?
According to the information on the website, there are websites that provide information on the 5 Best Online Trading Sites in 2013. The last in the list is Scottrade.
Which stock exchange is FONSE?
FONSE is derivative market for NSE. under this exchange future and options stocks can buy/sold.
What stock under one dollar should you buy?
If you need to ask, you probably shouldn't. Penny stocks are a good way to lose your entire investment. If any one of them was guaranteed to increase in value, it wouldn't be selling for under a dollar.
What stocks did best under Jimmy Carter?
Gold
Why is 5-dollar level so important in stock investing?
Perceived Risk - There are almost no companies that have gone public at a price below 5-dollar level. Thus, for a company that trades under $5 there is a big chance that some serious operational or financial problems have accrued in the past or recently, and there is plenty of statistics suggesting that $5 stocks frequently go to zero.Margin - Margin is a line of credit given to an investor so that they may make investments in amounts larger than their current funds would allow. This allows investors the ability to leverage their current holdings and make larger investments hoping that the return will be larger than the interest for the loan. These investors are taking on a larger amount of risk and so are the firms that loan the funds to the investor. Because of this most firms deem stocks under 5 dollars to be unmarginable. This means that they will not extend a line of credit on investments that are trading at less than 5 dollars. They do not feel that a stock trading under 5 dollars is good collateral. Some set the mark higher or lower but 5 dollars is the most common. They do this because of the higher risk associated with lower priced stocks. Brokerages worry that they may not be repayed if substantial losses are realized in a short period of time. These facts make unmarginable stocks or stocks trading under the 5 dollar mark less attractive to the investment public including institutional investors and hedge funds.Penny Stock Notoriety - A "penny stock," according to SEC interpretation, is an equity trading for less than $5 a share that is not traded on the listed markets of the NYSE, AMEX, or NASDAQ. This perception of riskiness in sub-$5 dollar stocks outside the major exchanges has definitely influenced the perception off all sub-$5 stocks, even those highly liquid and more transparent exchange traded stocks.Note: Many consider penny stocks to be stocks that trade for less than a dollar which are listed in cents (pennies) as in .87 cents or pennies.Institutional Investors - Many mutual funds' charters directly prohibit their managers from investing or holding penny stocks (those traded on the OTCBB and pink sheets) and generally stocks under $5 dollars. However, mutual funds are not obligated by any regulations to have such clauses and there are mutual funds that specialize in penny stocks.Government Influence - To the extent that municipal, state, or federal pension funds' charters might prohibit their managers from investing in stocks (or holding stocks) below 5 dollar level, we can talk about government involvement in discouraging investments in stocks trading below $5.Retail Constraints - Many brokerage houses and investment professionals strongly discourage trading in speculative stocks. Often their customers must sign extra paperwork acknowledging that they are aware of the risks of trading such stocks.See the related link below for an interesting article on the subject.
What are the worst stocks to invest in?
Anything priced under $5 per share, which is called a penny stock. (Used to be, penny stocks were under $1 per share, but everything gets more expensive.) Penny stocks are more likely to go down in price than to go up, so they are the worst stocks to invest in.
Where can you buy Chinese stocks in USA?
The answer depends on what your question means. Are you referring to Chinese stocks listed on U.S. exchanges or Chinese stocks on Shanghai Stock Exchange. If you are referring to Chinese Stocks listed on U.S. exchanges than nearly any broker-dealer should be able to assist you. Some of the larger brokerage firms however may have compliance issues with some of the stocks you are looking at, for instance if the share price is under $5 or the company is not currently listed on a senior exchange (i.e. Nasdaq, NYSE, etc.) However, smaller brokerage houses often are able to buy whatever stocks they want. Many of the Chinese stocks listed on U.S. Exchanges can even be bought through an online trading platform such as: Scottrade, Charles Schwab, E*Trade, Fidelity, the list goes on and on.If you are looking for some investing ideas related to Chinese Stocks here is a viable site: http://www.redchip.com/visibility/sectors.asp?sector=china
are losing stocks and mutual funds tax deductable under an ira ?
You cannot deduct loses from stocks or mutual funds in a regular IRA.
What is a sector mutual fund?
A sector mutual fund is one that invests in stocks of only one or a small number of sectors. They do not buy stocks of companies that do not come under the sector they are designed to invest in. For Ex: ICICI Prudential Infrastructure fund - invests only in infrastructure stocks. They will stay away from stocks that come under the chemicals, automobiles, banks sectors etc.
What browning over under stocks interchange?
Sometimes they will within a particular model.
Where can one buy stocks?
One can buy cheap stocks by buying penny stocks without a broker. A penny stock is a publicly traded stock that trades at a very low price, usually under five dollars.
What are the best future growth stocks?
http://www.fool.com/investing/high-growth/2005/06/22/4-growth-stocks-under-10.aspx
How do you round decimals to the nearest dollar?
if the decimal is under .5, then goes to a dollar, but if it is .49 or under, it goes to $0.
Where can one buy cheap stocks?
One can buy cheap stocks by buying penny stocks without a broker. A penny stock is a publicly traded stock that trades at a very low price, usually under five dollars.
