Most of the penny stock operations are given on the OTC market, better known as over-the-counter.

The market “over the counter” is made up of an electronic network, where the parties negotiate financial contracts. These operations are carried out between banks, brokers, financial institutions and corporate clients.

It is important to make clear that the investments in penny stocks are of high risk, because the companies where the money is put can spend a lot of time with the same quote, or else to fail.

But it is also true that you can buy an action at $1, and then that it rises to $5 or even more. If this case were given we could make thousands and thousands of dollars with a very low investment.

How to invest in penny stock?

The most common way to operate these companies is through the online brokers, which offer the Internet stock trading service.

Today it is possible to open an account in some electronic broker with only US $100, and start investing in a few minutes.

There are hundreds of stories of people who have become rich thanks to the penny stock. Then let’s count one that links a teenager who won US $300,000 investing in Penny shares from his mobile…
Connor Bruggermann, a 16-year-old boy, began investing in the stock market when his father opened an account for him in the online manager Etrade. With the 10,000 dollars earned thanks to their jobs as a bus driver or waiter, this teenager began investing in stocks of big companies like Apple or Verizon.

However one day he chose to change his strategy. He undone positions in all his investments and opted to bet on the American Community Development Group (Ticker: ACYD), a penny stock company, or listed under a penny, whose market price was sold at 0.003 dollars.

In just one year, Bruggermann managed to transform US $ $10,000 in US $300,000 investing in similar companies, a risk practice and sometimes linked to financial fraud, according to the portal the Verge.