A "penny stock" is a low-priced stock of a company that is not listed on any of the major public exchanges. Investments in unlisted companies are risky; many penny-stock firms are start-ups or development-stage companies that don't generate revenues or net income.

Nevertheless, for the services of an online broker such as E-Trade, you will pay a commission when trading a penny stock, whether or not it represents a good investment.

E-Trade allows you to buy and sell stocks, bonds, mutual funds, exchange-traded funds and foreign investments via the company's online trading network. After setting up your account, you access the site with a login and password and fund the account with checks, money orders, credit cards, debit cards or direct transfers from your bank account.

As an account holder you must be 18 years of age or older; you must also provide your Social Security number. You pay a commission to E-Trade whenever you buy or sell an investment for your account.

This includes stocks that are not listed on any exchange, such as the NASDAQ; unlisted stocks are also known as pink sheet or bulletin board stocks. As of May , E-Trade offered a two-tier commission schedule: There are no account maintenance fees or per-share commissions.

In general stock traders use "market" or "limit" orders. A market order is an order to buy or sell at the best price available; in a limit order, the trader specifies the desired price for the trade.

How to Buy Penny Stocks on eTrade | anajevopule.web.fc2.com

You must set a specific "limit" price that you accept when buying or selling these shares. This avoids any disputes from traders over unpredictable and often unfavorable market prices.

E-Trade does not set a minimum price for the stocks it handles. You can trade penny stocks or "sub-penny" stocks, for which the price is less than a penny. That means a stock with a market price as low as. If trading in a stock has been suspended or restricted a common occurrence among penny stocks , however, or if the shares have been canceled, then E-Trade cannot handle your buy or sell order. Holding a bachelor's degree from Yale, Streissguth has published more than works of history, biography, current affairs and geography for young readers.

People of our everyday life. Does E-Trade Charge Commission on Penny Stocks?

Etrade Penny Stocks

Related Articles 1 Hedging With Futures and Options 2 Liquidity Risk of OTC Stocks 3 Can You Sell Stock Anytime You Want? Basic Account Information E-Trade allows you to buy and sell stocks, bonds, mutual funds, exchange-traded funds and foreign investments via the company's online trading network. Commission Schedule You pay a commission to E-Trade whenever you buy or sell an investment for your account.

Sub-Penny Stocks E-Trade does not set a minimum price for the stocks it handles. How to Trade Stocks. Related Articles Hedging With Futures and Options Liquidity Risk of OTC Stocks Can You Sell Stock Anytime You Want?

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