Generally, the reorganization process is never favorable to equity shareholders. This means that even if the company announces that it will be reorganizing and emerging from bankruptcy equity shareholders can still lose their entire investment. Reorganization shifts ownership of the company into the hands of the creditors and bondholders. The equity shareholders are last in line. Sometimes equity shareholders could receive a small stake in the new company.
Well Im here to tell you right now to ditch big companies right now. Dont bother with investing large amounts of money into a company for minimal returns. About a decade ago I would be telling you the exact opposite of what I am telling you right now. Just under ten years ago was one of the best times ever to invest in fortune 500s. But all that has changed. In fact, during recent years many of the most respected well known countries in the world have seen their stock prices go down by as much as 20%!
The key to success in the stock market in todays world is investing in penny stocks. Penny stocks are cheap and have been seen to have returns as high as 100, 200, even over 1000%! Any of those numbers is staggering, especially when standard business practice tells us that a 12% return is a good investment.
This will help you train yourself with frequency trading on your demo account using real market data. You will learn how high frequency trading works without you risking your capital. Whatever, with this simple 1% daily gain strategy, you can make a windfall gain by the end of the year.
Maintain investigating and add to your checklist. Maintain your eyes open looking into news and studying content to discover more possible stocks. Don't listing stocks that don't satisfy your standards, yet only add stocks and shares which have true options.
It would be a good idea to opt for the stock screener or stock filter, which will do all the real hard work on your behalf. The stock screener or stock filter will give you authentic and last minute updates on the initial list of the superbly trending hot penny stocks list, and that too within no time. Therefore, you will be focusing on the real time investments rather than searching which type of penny stocks are trending high or low. Let that work be done by the stock screener or stock filter on your behalf.
As a shareholder in the business, the suitable recommendation I got is to draw up list of the stock or stocks you wish to put in fund and this can be achieved on your computer browsing through your internet brokerage account or even on Yahoo finance to ensure that you can view the stock within the period of one month or two just to know if the penny stock is greatly responding to the markets. Sometimes we are carried away or thrilled and wish to commence immediately just to make huge amount of money.
Rule #1 Know the nature of the beast before you invest. The world of penny stocks is often referred to as the "Wild West" of the financial marketplace and rightfully so! Risk awaits you around every corner and the landscape is chock full of liars, cheaters, thieves, and worse! Most companies won't be around in a year or two and over the course of their existence will employ numerous management teams, execute multiple name changes and reverse stock splits, and target a variety of "hot" markets with "breakthrough" products or technologies.Therefore, it behooves you to take everything you hear as a half-truth - at best!