Overview
What is the level of risk?
Very high
What is the general rule as the tiers increase?
They become riskier
What strategy is used with penny stocks?
Trading
What pattern is when open and close prices dramatically differ?
Gapping
Which scam involves false/exaggerated claims?
Pump and dump
What is the price of a penny stock?
Under $5 per share
Which tier is least open to manipulation?
Tier 1
What should traders be prepared to do?
Be ready to sell
What pattern occurs when the stock doesn't fluctuate with the rest of the market?
Which scam involves massive profits for brokers?
Chop stocks
Where are they traded?
Over-the-counter markets
Which tier is a sub-penny stock?
Tier 3
What should a penny stock have as a sign of potential success?
Strategic growth plan
What is a reverse stock split?
Share consolidation
Which scam involves internet fraud?
Pump and dump
When was Ford last a penny stock?
2020
What is a triple-zero stock?
Tier 4
Maximum percentage of your portfolio that should be penny stocks?
5%
Which two opposing patterns relate to rises and falls in prices?
Bottom-out and Top-out
Which scam involves issuing shares for no reason other than taking money?
Dump and dilute
How much did Apple trade for in 2000s?
80 cents
What is a traditional penny stock?
Tier 2
What is the ideal number of outstanding shares?
Less than 100 million
What are three candlestick chart patterns?
Fishook, pennant, and rocket
Which scam involves frequent share consolidation?
Dump and dilute