From GameStop to Bitcoin: the Latest Trends and Hot Stocks on the International Stock Exchange

Investing in stocks is profitable and risky. We figured out how to make money in the stock market, not lose all the initial capital, and remain in debt to brokers. This article will analyze the prospects of penny stocks that will go up tomorrow.

New trends on global stock exchanges

New conditions for the functioning of the infrastructure of the international securities market determine the transformation and active, innovative development of local stock exchanges in the 21st century, which, first of all, require:

  • Changes in regulatory legal acts aimed at improving investors’ rights, equalizing requirements between foreign and domestic investors, and directing the efforts of the state apparatus and its regulation towards a more open, efficient, and competitive functioning of the financial and stock markets.
  • Modernization and introduction of information technologies, automated accounting systems, and operations control.
  • Strengthening the orientation of the infrastructure towards the end investor, towards providing a direct connection between the issuer and the investor.
  • Improving risk management mechanisms and increasing the reliability of settlements on market transactions, introducing innovative, constantly updated security systems for settlements on securities purchase and sale transactions.
  • Providing investors with the broadest possible range of investment products (stocks, bonds, global index funds, index funds for the local market, industry index funds, derivatives, 1PO, and admission to transactions with foreign securities).

The development of an efficient market for financial instruments is one of the state’s top priorities at the present stage. Among the main factors determining the market’s attractiveness for investors and the efficiency of its functioning is the availability of financial instruments that meet the interests of participants and allow them to perform their functions effectively. The most critical component of market instruments is financial instruments.

What are penny stocks, and what is their attraction?

Along with ordinary shares and blue chips, the so-called penny stocks can be found on the market. Penny stocks are stocks of small companies that trade at low prices. Historically, it was considered securities worth less than $1, but the latest definition of the US Securities and Exchange Commission includes stocks worth less than $5 in this category.

Typically, penny stocks are stocks of companies that are either in the early stages or have not yet achieved significant leadership in their industry. However, this does not mean that penny stocks are bad. In many cases, these companies are focused on cutting-edge innovation. That is why traders and investors buy and will buy them based on assumptions, not general fundamental principles.

In addition to the low price, penny stocks have other features:

  • Such securities are often traded only in some additional listing on the stock exchange or even exclusively on the over-the-counter market.
  • The liquidity of junk stocks is significantly lower than that of ordinary securities and even more so than blue chips.
  • Companies issuing junk bonds either undergo a simplified procedure for state registration of the issue or are exempted from this procedure altogether for one reason or another. I
  • Information about the activities of the company that issues Penny Stocks is not as accessible as compared to the participants in the primary exchange listings. Sometimes it can be quite challenging to get reliable information about a company.

Despite all the shortcomings, penny stocks are of some interest, although the risks are pretty high even with long-term investments. One of the well-known trading rules plays a key role here – the higher the risk, the higher the possible potential income. Such stocks are high-risk assets that allow you to make quick money, but the probability of losing money is also high.

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