Goes to google furthermore does a investigation for "penny stock picks"
Finds a site offering a 100% at no cost service, also opts in to get the picks
Goes toward his/her online agent account moreover purchases the pick
Is without delay upset when they see the appalling results
So how can this be? Well it's really simple. Most stock newsletters are paid to synopsis each one of their penny stock picks. Therefore there can be no intention reason why they think the stock will go up in value. They are only recommending it due toward the recompense they received, sometimes up to $500,000.
If the otcbb stock pitching newsletter receives such a hefty sum, that tells me something: They are expecting to get rid of much more stock to the general public who is suckered into buying their pick compared to what they were salaried toward promote the stock. In other words, as the newssheet is promoting the stock, the stock is being diluted, along with the attention of the people who got the stock.