ok ,one more on penny stocks?

Question

Lets say i get one for $5 or $10 or whatever and I cant sell it. Is that all i lose is my initial investment or is there fees or dues that i will have to pay also? Does just having one thats not doing anything cost you more money?

Thanks for the answers people!

Answer 1

A stock trading for less than $1 and in some cases less than $5 are considered penny stocks. They are typically junior mining companies, looking for diamonds in the timbucktwo, and are extremely risky speculative investments. No, there are no fees. You buy a stock and pay a commision to your broker. When you sell, you pay a commision to your broker.

A stock trading for 10 dollars is not considered a penny stock.

You don't buy 1 share. The minimum you typically buy is 100
shares or a Board Lot of shares.

There would typically not be a reason you wouldn't be able to sell your shares, unless the trading on the stock was halted by the stock exchange itself due to some unscrupulous activity, or if the price of the shares collapsed to nothing because the
company declared they were BUST.


Having shares that a not doing anything is costing you, because you could have your money invested in another invetment, so there is an opportunity cost of any investment.

Answer 2

VERY IMPORTANT: Penny stocks are purchased by "newbies" because they look like a quick way to make money. They're not. Buying penny stocks is just a little better than gambling.

No one should be investing in penny stocks until they have years of investing and trading experience. To do less is asking for a financial train wreck.

Answer 3

No, there are not extra fees or dues for owning a penny stock. No, if the stock is not moving it will not cost you anything extra either. The most you will lose is your initial investment, which is why penny stocks are deemed as high risk / high reward investments.

Answer 4

Keep doing your research and try to learn everything you can about the stock market, if you choose to buy penny stocks, do not, and i repeat DO NOT invest more than you can afford to lose

Answer 5

there is no continuing cost.

of course, the broker who buys it for you expects to be paid and his fee likely isn't cents but dollars.

that's why the bettors who like penny stocks usually trade in thousands of shares .... transaction costs are too high to fool with less than hundreds or thousands of dollars worth.


btw, there are lots of penny stocks that trade in Canada and have regular quotations, etc. [instead of pink sheets]. I suspect that bid-ask spreads are just as high and maybe i'm wrong about that.


GL