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Are Penny Stocks a Good Investment for Newbies?

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 Penny stocks are company shares that cost less than $5 to buy. "Penny stocks" are not necessarily "small-cap stocks," "micro-cap stocks," "nano-cap stocks," or even "large-cap stocks," contrary to common assumption. To determine if penny stocks are suitable for beginners, you must first grasp the fundamentals. The phrase "market capitalization" is used to describe the value of a firm based on its current market price multiplied by the number of outstanding shares. Mega-cap stocks: Companies having a market value of more than $200 billion fall under this category. Large-cap stocks: Market capitalizations ranging from $10 billion to $200 billion. Mid-cap stocks: Market capitalizations ranging from $2 billion to $10 billion. Small-cap stocks: Market capitalizations ranging from $300 million to $2 billion. Micro-cap stocks: Market capitalizations ranging from $50 million to $300 million. Nano-cap stocks: Companies with a market w...

Quarter - Q1, Q2, Q3, Q4

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On a company's financial calendar, a quarter is a three-month period that serves as the foundation for quarterly financial reports and dividend payments. The majority of financial reporting and dividend payments occur quarterly. Not all companies' fiscal quarters match the calendar quarters, and it's customary for businesses to complete their fourth quarter after their busiest season.  The fiscal quarter and the fiscal year are the two primary accounting periods for businesses. Most businesses' fiscal years span from January 1 to December 31 (though it does not have to). The following are the traditional calendar quarters that make up the year: - January, February, and March (Q1) - April, May, and June (Q2) - July, August, and September (Q3) - October, November, and December (Q4) Companies, investors, and analysts compare and assess trends using data from multiple quarters. A company's quarterly report, for example, is frequently compared to the same quarter of t...

The SEC's new plan might be a significant gain for day traders

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Have you ever traded penny stocks with a small account only to be frustrated when it came time to make another trade? Many people who invest in small-cap stocks are concerned by the Pattern Day Trade regulation. To purchase and sell penny stocks or higher-priced stocks within a single day and more than three times during a rolling 5-day period, traders must have at least $25,000 in their trading account. In many circumstances (depending on your broker), you may avoid this by using a cash account.You can make as many day trades (buying and selling in the same trading session) as you like.However, you can only use the amount of settled funds in your account. You must be mindful of settlement time-frames if you trade penny stocks.Your money will usually be settled two business days following the trade date (T+2).That implies you'll have to wait a few days after selling out of your transaction before you may trade with those funds again. The "benefit" is that you are "fo...