If you are new to the world of micro cap shares, we can expect that you will want a penny stock guide. As its name implies, it is a guide to the whats, wheres, whens, whys and hows of penny stock investing and trading that both the novice and the veteran investor and trader can take good advantage of.

Keep in mind that said guide is only that - a guide. Ultimately, you have to make the decision whether to buy or sell or keep the penny shares at any time. Yes, your stockbroker may be of help but we still suggest being on top of your investments since it is your money at stake, not anybody else's.

Let's start with the question of what a penny share is. Strangely enough, there is no general definition of what makes for a penny stock other than it can be defined in three ways depending on who does the asking and who does the answering. Thus, a penny stock can be defined as falling under any of these categories:

* The price per share at trade value is less than $5

* The stock market where it trades on is not the mainstream kind like the New York Stock Exchange. Instead, special stock markets like the OTC-BB and Pink Sheets handle penny stocks.

* The market capitalization is less than $25 million although other definitions place it at $50 million

Thus, a reliable penny share guide will consider one stock as a penny share because it trades at less than $5 but it may not be considered as penny stock because its market capitalization is, say, $51 million. No matter which definition is taken, similar rules apply as to the buying and selling of penny stocks.

But first, where do penny shares trade? Contrary to popular ideas, there are many venues for penny share trades and all of them are legal, of which the following are the most well-known:

* NASDAQ SmallCap Market is the safest place to find penny shares because of the strict reporting requirements and compliance policies.

* OTC-BB is also a highly-regulated quotation service displaying real-time quotes, volume information and last-sale price.

* American Stock Exchange (AMEX) offers excellent investor visibility, high standards for corporate responsibility and strict reporting requirements.

* Pink Sheets are good sources for stocks, too, although more caution is required when trading in this venue.

You will also be pointed the way toward buying straight from the company mainly to avoid the broker's fees. However, we also caution against this type of acquiring penny shares as fair market valuation may not be as easy as it might appear.

A reliable penny share guide should also point the way to the methodology, techniques and technology necessary to pick the best stocks. You can then use such knowledge regardless of the market conditions, the industry chosen and the value of the stocks.

You have many ways to analyze penny shares. We can mention technical analysis, fundamental analysis and stock screeners, to name a few.

Indeed, the right penny stock guide can be your ally in building your wealth one stock at a time.