PENNY STOCKS: Are They Really Worth Your Penny?

2007-03-08 10:33:40

( Business )



Penny stocks have been growing in popularity in recent years. But behind all the hype and noise, is penny stock investing worth giving a try?


Are They Really Worth A Penny?

They can be. Penny stocks can trade even from a fraction of a penny to $5. All penny stocks are traded over the counter, on penny stock markets, or on the pink sheets. A lot of investors are lured to penny stock investing because it does not take big cash outlay to get started, plus you can own a good company inexpensively.

How to Get Started

Investing in penny stocks is easier than you think. In fact, you can start right now. You can search the Web for a penny stock professional who will guide you in getting started. Your penny stock brokers will walk you through the entire process and next thing you know, you’re already investing!

Finding the Good Ones

With so many small companies offering penny stocks, it can get confusing. The way to find a good stock is to look for good penny stock lead. Read about penny stock news or avail of the services of a penny stock newsletter. Just remember that you should never buy stocks through unsolicited email, a phone call or a free newsletter. Buy penny stocks only from companies with a good trading volume, a sound business plan and sound financial standing.

Benefits and Risks

The greatest thing about penny stocks is their potential for rapid and astounding gains. You can turn a small investment into a fortune in no time! it is also a good way to learn about the markets without the risks of over-committing. But remember that these investments are riskier than the average investment because of the volatility of the shares and the continuing problem of the lack of corporate transparency. It is not for all investors.


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