Is trading massive quantities of cheap stocks legal?
Such as buying like 1,000,000 stocks at 50 cents a share during a down cycle, and selling those 1,000,000 stocks the next day at 60 cents a share at a peak, making 100,000 profit (not taking into account exchange fees)?
- tiescoreLv 63 weeks ago
Illegal no, going to happen not likely at all. Plus your going to need the full half million in your account, as sub $1 will almost assuredly have the full boat equity requirement. Far more likely you'll catch a 50 cent bid, the stock goes no where and you have to bail at a 40 cent ask.
- 3 weeks ago
Yes, If you have $.5M to buy the shares.
- StephenWeinsteinLv 74 weeks ago
Yes, but where are you going to get $500,000 to pay for 1,000,000 shares at 50 cents a share?
- Ron AkiaLv 64 weeks ago
It's perfectly legal although you would need $500,000 cash upfront in your brokerage account to purchase these 1,000,000 hares @ .50 each. And, if that stock dropped to .40 instead, you'd face a loss of $100,000.
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- JudyLv 74 weeks ago
sure it's legal. But good luck making that happen.
- The Old GuyLv 64 weeks ago
Yes it's perfectly legal.
BUT - do you have $500,000 to put up ?
Problem - in the real world, it would be hard to find buyers, especially in a down market.
There is no exchange fees on stocks that trade OTC.
Customers ARE NOT charge "exchange fees" on stock transactions.
- BillLv 64 weeks ago
If you have $.5M to buy the shares with, yes.
- Anonymous4 weeks ago
You can find many ways to lose your money. And you WILL lose your money.