why is it good or bad to buy, also what are the risk compared to other higher prices stocks
2007-08-03 17:25:45 · 6 answers · asked by ryan y 2 in Business & Finance ➔ Investing
They are low priced stocks. Much riskier.
Please read my previous post. You shoud never invest in what you don't understand.
You seem to have money just burning a hole in your poscket here. Try mutual funds not individual stocks!!!
2007-08-03 17:30:47 · answer #1 · answered by Anonymous · 0⤊ 0⤋
Penny stocks are low-priced stocks, that trade below $5 per share. The problem with penny stocks is that information about them is hard to get, which makes it easy for fraudsters to rip you off. Also, the markets for them can be "thin." In other words, there may not be a lot of other people to trade with, so prices can fluctuate widely on a relative scale. Consequently, the risks of penny stocks can be pretty high.
Some people invest in penny stocks because they have only modest amounts of money (like a thousand or two dollars), and penny stocks appear to be "cheap." However, because penny stocks can be highly speculative and risky, they are not, in reality, cheap. If anything, they're likely to be expensive compared to the profit potential of other investments.
If you have only modest amounts of money, start by investing in mutual funds. You can open a mutual fund account for a relatively small amount, especially if you are opening an IRA. Mutual funds are much safer, and you can easily get information about them. If you're new to investing, consider a lifecycle or target date retirement fund. The managers of these types of funds do the investment strategizing for you. They allocate your money into a diversified portfolio. You don't have to be a money manager. See the webpages listed below for more information.
2007-08-04 01:47:45 · answer #2 · answered by Uncle Leo 5 · 0⤊ 0⤋
Generally "penny stocks" are stocks of small companies which sell for less than, say, $ 5 a share. The amount of stock outstanding is not very high, and they are not listed on the NYSE, Amex or NASDAQ, but are listed on "pink sheets". Generally, the risk of these is quite high since the companies are at a stage of development where they have yet to make profit.
2007-08-04 00:46:01 · answer #3 · answered by cattbarf 7 · 1⤊ 0⤋
Penny Stocks are stocks less than $5. They are very volatile and risky compared to higher prices stocks.
If you want to make money from penny stocks, you can try this site. Their average stock recommendation per trade is more than 100%!
http://hubpages.com/hub/Doubling_Stocks_An_Easy_Way_to_Make_Money
2007-08-04 13:51:49 · answer #4 · answered by Anonymous · 0⤊ 0⤋
they are very small, low priced stocks for small companies. its not that they are bad to buy, its just that they frequently fluctuate. its a good starter stock for beginners. just don't buy too many.
2007-08-04 00:37:42 · answer #5 · answered by bambi 2 · 0⤊ 1⤋
they are fantastic! the risk is like any other, they def fluctuate very quikly but if you do your research then it should be in your favour, check out http://goldenbullpicks.com i am with them and you will be impressed!
2007-08-04 08:29:01 · answer #6 · answered by Anonymous · 0⤊ 0⤋