Buy Penny Stocks & Investing Tips

Schwab’s online, computer application protects a buyer from making particular transactions of penny stocks that it is not programmed to carry out–no harm, no foul. USAA, however, permits a buyer to enter a fractional cent, limit purchase of a stock from the pink sheets, but its computer application then rounds the limit up to a cent. The transaction occurs instantly, of course, simply because some seller makes a killing off of the buyer courtesy of USAA’s raising the limit. Is that legal? Ought to USAA (or any broker) be liable for the additional cost that it adds to the provide to purchase? If a broker’s computer application can’t handle fractions of cents, it appears at the very least a small misleading to allow a user to enter the lower decimal values.

With all the media identifying that Common Motors stock is potentially worthless, with a rumored business intent of a reverse split of 100 to 1, why is the stock price rising on the Pink Sheets? If the stock is worth potentially pennies, why is it trading at a $1.00? Are these just day traders playing on the rumor mill until more concrete info is released? Is this worth investing money into? What could make or break this stock to a point of worth investing into or avoiding altogether?