Important Information on Penny Stocks
It is important for our customers to understand that trading penny stocks can be very risky. Penny stocks are low-priced shares of small companies not traded on an exchange or quoted on FINRAAQ. Prices often are not available. Generally a penny stock is a security that:
- Is priced under five dollars
- Is not traded on a national stock exchange or on FINRAAQ (the FINRA's automated quotation system for actively traded stocks);
- May be listed in the "pink sheets" or the FINRA OTC Bulletin Board'
- Is issued by a company that has less than $5 million in net tangible assets and has been in business less than three years, by a company that has under $2 million in net tangible assets and has been in business for at least three years, or by a company that has revenues of $6 million for 3 years.
If you decide to buy penny stocks, you must understand that the securities being bought have not been approved or disapproved by the Securities and Exchange Commission. Moreover, the Securities and Exchange Commission has not passed upon the fairness or the merits of this transaction nor upon the accuracy or adequacy of the information contained in any prospectus or any other information provided by an issuer or a broker or a dealer.
Trade Eagle does NOT provide any advice or information. As our customer, you are making unsolicited trades and must understand that you are responsible for your own transactions.