I was planning on buy 1,000 $1 stocks that if reached $1.5 sell and make $500 - $14 for commison. That is what penny stocks are? Why don't they work? I heard they don't!
2007-02-27 14:49:01 · 4 answers · asked by Anonymous in Business & Finance ➔ Investing
The issue with penny stocks is that they are cheap...They are cheap because they are *extremely* risky ventures that most investors stay away from. If they were more popular or had a better risk/reward value, then more investors would be interested in them and their prices would go up. They are difficult to sell because of the stigma they carry - most are financially troubled companies that are ready to go bankrupt or are trying to emerge from it. They also run the risk of losing their listing, in which case you will have to try to find another way to sell your stock privately.
Remember, the stock price will only go up if you can find people who are willing to spend more than you did to buy the stock from you and nobody else is willing to sell lower than you want. With penny stocks, that is very difficult. You also need to see if the company is still trying to sell off its stock. You may buy 100 shares at a dollar...but the company has 1,000 additional shares at the same dollar it will be selling first before you would see any movement in the price.
2007-02-27 14:57:54 · answer #1 · answered by jerry 5 · 1⤊ 0⤋
they never do. u need some one to really invest and believe in a company to truly invest a gerat amount of money in a penny stock like 500-1mill that makes the stock price dart up u cant expect to make money with ppl like u only guyin 1000 dollars worth not much volume so dont bother and u gutta pay tax on that if ur gunna invest truly start with 10 grand so u can actually see the profits after taxx.
2007-02-27 22:53:11 · answer #2 · answered by Anonymous · 1⤊ 1⤋
Your questions reveals the following;
You know little about investing... yet you're trying to make money in one of the hardest parts of the market.
You feel easy asking strangers that you have no idea what their qualifications are.. or their motives about your money needs.
You look for the "easy way out". Instead of reading about investments... working hard to understand them before you invest, you act like a gambler instead of an investor.
Keep this up & you'll be poorer much sooner than you expected.
Consider yourself warned.
BTW: READ... READ... Work Hard... READ & Read!
Always understand what you're investing in.
Don't Gamble!
2007-02-27 23:23:19 · answer #3 · answered by Common Sense 7 · 6⤊ 7⤋