answersLogoWhite

0

Penny stocks are cheap, because that's their value. However, many investors don't realize that penny stocks can grow to become high in value. The next time you create an investment portfolio, throw in a few penny stock and you will be surprised on the growth.

User Avatar

Wiki User

12y ago

What else can I help you with?

Related Questions

What are the advantages and the disadvantages of buying penny stocks?

The main advantage to buying penny stocks is that they are so cheap. One also has to consider the downside. The major disadvantage to penny stocks is that these stocks often fail.


Where can one buy stocks?

One can buy cheap stocks by buying penny stocks without a broker. A penny stock is a publicly traded stock that trades at a very low price, usually under five dollars.


Where can one buy cheap stocks?

One can buy cheap stocks by buying penny stocks without a broker. A penny stock is a publicly traded stock that trades at a very low price, usually under five dollars.


What can one get from Penny Stock's forum?

On Penny Stocks's forum one can learn how to purchase a penny stock. One can learn about penny stocks and other information such as how to invest on the forum.


Where can one find information on the NASDAQ penny stocks?

You can find information on NASDAQ penny stocks online at the All Penny Stocks website. Once on the page, hover over "Hot Penny Stocks" in the left navigation menu and click on "Hot NASDAQ Penny Stocks."


Where can one find penny trading stocks?

Penny trading stocks can be found on a number of websites online. Global Penny Stock is one of the more well known options for people interesting in this form of stocks.


What are penny stocks and are they actually only a penny?

A penny stock is one that is relatively cheap and does not actually mean that the stock is one cent. The penny stocks are usually high risk but high reward.


Where can one go to learn about buying and selling?

Buying and selling is a very broad topic that likely refers to buying and selling stocks. One can learn about buying and selling stocks from many sources including Investopedia and About - Stocks.


What are the disadvantages of buying penny stocks?

The main disadvantage of buying penny stocks is that the value of the stocks fluctuate enormously on a day to day basis. Penny stocks may also be very hard to sell once you own them. To benefit from penny stocks, one must be very knowledgeable and experienced with buying and selling stocks, so penny stocks are not for first time buyers.


Are penny stocks volatile?

Penny stock is that they are highly volatile. Basically, if you invest in penny stock, you should always be prepared for the possibility of losing the whole investment. They are but their appeal is why people invest in them. These stocks can easily jump 20-30% in a single day, and even more. Once I invested in penny stock that jumped 87% in one day, and I sold the day after. Also, an important thing to know is that penny stocks may trade infrequently, which means that it may be difficult to sell penny stock shares once you own them. But this can be avoided by not buying stocks that have low trading volume.


What Is a Penny Stock?

One of the most popular traded commodities is something known as penny stocks. Penny stocks are actually relatively similar to regular stocks. When a company goes public, ownership in that company is sold to the public via shares of stock. Penny stocks are shares of stock that are valued under $1. Some of these stocks may even sell for less than a penny. However, there are other significant differences between penny stocks and regular stocks as well. For one, penny stocks are not held to the same standards as regular shares of stock in regards to regulation and oversight. For example, a company that releases penny stocks is not actually required to disclose financial records like other public companies. Considering most people trade based on such disclosures, this is a huge difference. How shares in these stocks are traded is quite different as well. You will not find penny stocks listed on the New York Stock Exchange or the Nasdaq. To find penny stocks, a person must search through secondary markets. One such popular source is a listing known as Pink Sheets. One big drawback of owning penny stocks is their lack of liquidity. Liquidity is the amount of time and effort it takes to covert something into cash. If an asset has high liquidity, it can be converted rather quickly. More traditional stocks traded on the major indexes have much more liquidity than penny stocks. Part of this is due to how penny stocks are traded. Certain investors may own millions of shares of penny stocks in a single company. This effects liquidity since selling off that amount of shares will probably change their value. Unfortunately, the buying and selling of penny stocks has become a source of fraud over the years. This is a byproduct of the far less stringent regulation of penny stocks. Over time, a number of schemes have become well known to stock traders. Many of them involve large amounts of penny stocks being purchased by a few investors. False rumors about the profitability of the company being invested in are then spread by these individuals. The stocks are then sold at a profit, and the victims of the scheme are left with absolutely worthless shares.


Where can one start buying direct stocks?

One can start buying direct stocks by using the company's direct stock purchase plan. With this plan, it will enable stocks to be directly purchased from the company.