Best NASDAQ Penny Stocks Right Now • Daily Update • Benzinga

NASDAQ refers to the National Association of Securities Dealers’ automated quotes exchange. It was the world’s first all-electronic exchange and is subject to regulatory oversight by the Financial Industry Regulatory Authority (FINRA).

The term penny stocks has traditionally referred to stocks trading at less than $1 per share, although some financial industry organizations and exchanges now consider stocks below $5 to fall into this category.

The Nasdaq lists many promising companies whose stocks qualify as penny stocks, as well as some stocks that have fallen in value because their issuing company may be near insolvency. Penny shares are also traded on other markets regulated by the Securities and Exchange Commission (SEC), such as the New York Stock Exchange (NYSE) and the over-the-counter (OTC) market.

Quick Look at the Best NASDAQ Penny Stocks

• Transocean Ltd
• ElectraMeccanica Corp. Vehicles
• Future FinTech group
• Best Therapeutics Inc

Overview: NASDAQ Penny Stocks

Penny stocks have a special dynamic that sets them apart from their more expensive counterparts. Typically, a company with a penny stock has either recently met Nasdaq listing requirements and had its stock listed at a low price, or its stock price has fallen to the penny stock level as a result of a decline in the company’s revenue or other adverse event that may adversely affect its future prospects.

Nasdaq listing requirements state that a stock must trade at $4 or more and have at least 3 market makers for the stock. Still, the company can qualify for its stock to close below $3 or even $2 per share if it meets certain criteria.

Once the company fails to meet Nasdaq’s listing criteria due to a decline in share price, its penny stock typically ends up listed on the Pink Open Market or OTC Market. This could also happen if the stock is being delisted from the NYSE or the American Stock Exchange, Inc. (AMEX) for failing to meet those exchanges’ continuing listing standards.

A major advantage of trading penny stocks is their high volatility, although the added risk involved may seem unsettling to conservative investors. For example, the frequency of stocks priced at $0.05 per share trading up to $0.10 is generally higher than that of a stock priced at $5 rallying to $10. Investing in penny stocks can produce higher returns with less capital invested, and buying them involves limited risk as their value cannot drop below $0.

Best Online Brokers for NASDAQ Penny Stocks

Some of the biggest commission-free online brokers make the best online brokers for Nasdaq penny stocks. Brokers that charge no commission for stock trades include Charles Schwab, TradeStation, E*TRADE, Robinhood, and Fidelity. All of these brokers can execute orders for penny stocks listed on SEC-regulated exchanges, such as Nasdaq and NYSE.

If you plan to trade the more speculative OTCBB or OTCQB (pink sheet) stocks, check with your broker to see if they can even execute your orders on the stock. You may also consider using TD Ameritrade as your stock broker, as they charge reasonable commissions for a round trip (buy/sell) on the OTCQB exchange.

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Are Penny Stocks Right For You?

Few full-price stocks can match the percentage returns potentially obtained by trading penny stocks. While our Nasdaq penny stock picks are currently trading at higher levels to qualify for listing on this exchange, you can find some interesting stocks trading at less than 10 cents per share that could easily rise significantly in value at over time. Investing wisely in penny stocks could help you double or even triple your money.

The attractive risk-reward ratio, limited downsides and low capital outlay involved in speculating on penny stocks can look very appealing if you think you can choose the right stocks to invest in. a highly speculative investment, so your capital could be at risk if a company you have invested in becomes insolvent.

Frequently Asked Questions

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