While those terms seems weird for your ears, no need get bothered by them. They are acronyms for several stock exchanges from around the globe. Those stock exchanges are actually the place for any potential buyers to meet with the sellers and shares exchange hands. The oldest stock exchange in the world is the NYSE or the New York Stock Exchange. Most companies in the US try to get themselves listed here. There is a certain financial and well as industrial criteria that the companies need to meet to get themselves to list here. This exchange is located on the Wall Street.

For trading at NYSE you need to be either a registered broker with NYSE or you need to have an arrangement with an entity who is a registered broker at NYSE. It is not an easy thing to become a broker at NYSE and it costs a huge amount of money may be say a million dollars.

Similar to NYSE is American stock exchange which is again in the financial district of the country called New York. The American exchange has stocks for trading but also has options for trading. The AMEX can trade smaller companies than traded in NYSE and hence it is attractive to a lot of companies.

NASDAQ is the baby of them all though not in terms of the sheer size of companies listed on it and the full form of NASDAQ is National Association of Securities Dealers Automated Quotations. It began in 1971 and has almost any company you could think of listed there. Historically though it was known for technology companies like Microsoft and Intel and a lot of new technology start ups like to list here. This exchange does not have a physical building and it works a computer network where buyers and sellers meet through computer software and sell or buy stocks.

If you are international investor there are stock exchanges apart from America in other countries which you will keep hearing like the Bombay Stock Exchange, Hong Kong Stock Exchange or Hang Seng, Luxembourg stock Exchange or even the FTSE.

Make sure you enough about the exchange you want to trade on as that can help you decide the initial amounts for investing and the ease of investing.

It is unusual that the businesses that issue these types of shares have complex organizations – usually they are simple to understand and research. There’s a lot of of these kinds of stocks that are companies that deal with with resources – their value will appreciate and depreciate depending on the price of the commodity.

As you might guess, penny stocks are considered to be high risk investments. Unfortunately there’s always the risk that the company won’t survive even with proper research.

Keep in mind that the reporting regulations for penny stocks aren’t always as tight as stocks on bigger exchanges. One of the sorts of penny stocks is known as a “pink sheet” and has virtually no regulation when it comes to their reporting and accounting standards.

As you can imagine, due to this lack of standardization, this sort of stock is very vulnerable to manipulation and possibly even fraud. A common schemes is called referred to as a “pump and dump” – this refers to investors manipulating the price of stocks to increase and then dump all of their shares immediately and leave other people with big losses.

Don’t let the above scare you off these types of shares! Penny stocks always have risks but also have a big potential for a large gain. You can find lots of real, sound small businesses, and they have to get going somewhere. Tons of organizations that are classified as penny shares are headed to be successful in the oncoming future. If you’re someone who can choose one of these companies, your gains on your investment will be hefty.

When you are able to choose companies that have promise, your payoff are going to be massive. It’s possible that you drop money on several trades, yet the one winning pick will give you such a big return that any previous losing choices won’t be an issue.