Most public stocks trade on national exchanges like the NYSE (New York Stock Exchange) and the Nasdaq. National stock exchange houses provide public stocks with a forum to publish quotes. Being listed on one of these major exchanges can greatly enhance a stock's liquidity, however, not all stocks qualify for listing. Those stocks which don't qualify are usually listed on the Pink Sheets, which is primarily reserved for penny stocks, or stocks which are less than $5.
Instructions
1. Go to the Pink Sheets website. Here you will find a list of stocks which are classified as penny stocks. Brokers can publish bid and ask prices on the Pink Sheets with few listing requirements. That is, there is no requirement in terms of market capitalization or size.
2. Take down the ticker symbol and quote for the stock you are interested in. You can use the look up function in the left pane if you are unsure about the ticker and only have the company name.
3. Find a broker who deals in penny stocks. Due to the nature and risk of micro-cap stocks, not all brokers will trade them. Ask your broker if they trade penny stocks. If they don't, ask for a referral. E-trade and Ameritrade are two brokers which trade penny stocks.
4. Divide the amount of money you would like to invest by the current price of the shares to get an estimate for the number of shares you can afford to purchase.
5. Contact your broker and place an order. You will need the ticker symbol and the number of shares you would like to purchase. Be sure to use a limit order. A regular market order can be a costly move in penny stocks. Placing a limit order will allow you to set the price you want to purchase the stock.
