What Are Penny Stock Symbols?
When examining penny stock symbols, the first four symbols identify the name of the company, while the fifth symbol has special meaning. Find out how to tell if a company is bankrupt or delinquent in its filings with help from a portfolio manager in this free video on penny stocks and investments.
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Do you like to invest in penny stocks? Hi this is Roger Groh with Groh Asset Management. If you do, one of the issues that's going to come up is, what's the symbol? Well the easiest way to get a symbol is to an initial search on Bloomberg.com or maybe Yahoo.com. Anyway, little bit of history of stock symbols. Think back to years and years ago when stocks were traded using a telegraph. The shorter the symbol, the easier it was to trade. So in the early days, the companies had one symbol or two. It would still be all that way in likelihood, except most of those are now used up. So for smaller companies, especially those that trade on the bulletin board, typically they have 4 or maybe 5 symbols. In either case, the first 4 identify the name of the company and then that fifth symbol has special meaning. For instance, if the fifth is Q, it means that that company is bankrupt. If the fifth is E, it means that the company is delinquent in it's filings. If the symbol is A or B, it means it's the class A or class B stock as an example. For the specific definition of those letters, go to otcbb.com. The OTC Bulletin Board.com, that's what that means, and it will give you the definition of all the letters that you see in the fifth line there. Remember, not all companies that you see that are listed or trade somewhere that have 4 symbols or 5 are small. Many of them are giant. For instance, mutual funds frequently will have 4 or 5 symbols and they can be very large. So it is really important to identify the specific symbol that you need and the specific class of stock that you need so that you can buy what you really want to buy. Hope that helps, I'm Roger Groh with Groh Asset, thank you very much for spending time with me.