2006-09-28 11:04:34 · 4 answers · asked by hawkeye 1 in Business & Finance ➔ Investing
Its exactly the same question as "Do you think its a good idea to play the lottery ?". Penny stocks are extrememly risky and more often than not you will lose money. But as cheap as they are if it works out it can be a very nice profit. If you look it at that way you can make a decision about whether you want to risk you money that much.
2006-09-28 12:44:26 · answer #1 · answered by Gazoo 2 · 0⤊ 0⤋
No, many of them have no earnings, no equity, or no assets. Most of them are on the edge of bankruptcy, or headed there. They trade in the Pink Sheets or on the Over The Counter Bulletin Board, where there is very little regulation. They usually cant meet the conditions for trading on an exchange. And that isnt a good sign.
2006-09-28 18:30:25 · answer #2 · answered by jeff410 7 · 0⤊ 0⤋
If you have extra money with no use, you might consider buying penny stocks of companies, if you know something about them besides the e-mail or fax they sent you. You have to do more detailed research than normal, since they are smaller, more risky companies.
If the money is to save for retirement, schooling, anything direct and important, don't do it. This is for money that, if you lost it entirely, would have little to no effect on your life.
2006-09-28 18:27:39 · answer #3 · answered by Polymath 5 · 0⤊ 0⤋
Yes and No, you could have amazing gains in a short amount of time or horrible losses in a short amount of time.
2006-09-28 21:44:55 · answer #4 · answered by Anonymous · 0⤊ 0⤋