if i invest in cheap stock market companies will i see results ?

Question

say i invest in lower stock companies whom are like 1-50 dollar per share will i see results? , and how does the stock market really work?

i have heard about mutual funds but, not quite familiar what is is about?

Answer 1

Most companies have a price under $50. Keeping the price lower makes the companies a little more liquid, but has nothing to do with the fundamental performance of the companies.

If having a lower price meant better performance, companies with high prices would have stock splits.

Historically, low cap stocks have outperformed the market -- but most of that extra return comes from the January Effect.

Answer 2

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Penny stocks, also known as cent stocks in some countries, are common shares of small public companies that trade at low prices per share.
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Answer 3

The price per share really has nothing to do with whether or not you will see results.

If you invest in good companies that experience growth and turn profits, then their stock will go up and you will profit.

It is normally a much better idea to invest in quality mutual funds with good track records. Then you have a money manager deciding which stocks to purchase in the fund. Since you have not taken the time to research the stocks (or the stock market in general) it seems like a much wiser way to invest your money.

Most mutual funds have minimums in order to get in. Of course you would not be buying less than that in most stocks since you would be paying a fee for each transaction and would want to minimilize that fee's afect on your investment.

Answer 4

This is not a sound invetsment logic. Today the market is up , tomorrow it could go down. Investment in Stock market should be made with to have a decent return with a long term( 5 yrs) view.The returns are certain only in the long run. Since, you are starter, I would not advise you to go directly into equity.It will be very risky, since you lack the basic knowledge and expertise. I would rather advise you to invest in stock market but via the mutual fund route. It is relatively much risky but would give you decent returns in the long run. You can expect 25-30% p.a return on your invetsments but again make sure you take the help of a person who has sound knowledge of mutual fund, in deciding which fund to select. View the past performance of the fund and the track record of the fund house.

Answer 5

Penny stocks are loosely categorized companies with share prices of below $5 and with market caps of under $200 million. They are sometimes referred to as "the slot machines of the equity market" because of the money involved. There may be a good place for penny stocks in the portfolio of an experienced, advanced investor, however, if you follow this guide you will learn the most efficient strategies https://tr.im/e3f14

Answer 6

You will see result only of the stock price go up. If the cheap stock goes bankrupt, then you see nothing.

Answer 7

"Penny Stocks" are generally considered any stocks under $5.00. Some investors think it $10.00 or less.

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Take a year and read all you can. It will save you thousands of dollars.

Consider yourself warned....................

Answer 8

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