Can someone please tell me what exactly are PENNY STOCKS? and how i can get rich off of it. Thanks!?

Answer 1

any stock that sells for less than $1 is a penny stock.

Answer 2

Penny stocks are stock in little companies that might mostly still be owned buy those that started them. They call them penny because the share price is often only a few cents always under $1.
You make money by selling yours to the next person who heard you could get rich on them.
Young gamblers feel like they can buy 100,000 shares because that is only 2 cents each or 2,000 and the price might double. What they don't realize is very few people own shares and many of them are company directors who can vote for their own paychecks. The directors know when loses are coming and will sell shares to people attracted to the low price.
If you are the one to get in first and get out first you can make money off later suckers.

Answer 3

Penny Stocks are "big risk, big return" type stocks. Most of the companies in the OTC markets (aka penny stocks) are just smoke and mirrors companies with no real value. However, that doesn't mean that the stock itself doesn't trade well for whatever reason. You get rich basically by buying at a low price and selling at a higher price. Let's say you buy shares at $0.01 and it bumps up to $0.02, you just doubled however much money you invested. That's a quick nutshell of how it works. Also, if you sign up to a penny stock alert site that is actually decent, they will find stocks and announce them before they jump up in price. My favorite stock alert site is: goo.gl/qBmyyL

Answer 4

Many new investors are lured to the appeal of penny stocks due to the low price and potential for rapid growth which may be as high as several hundred dollars in a few days. Similarly, severe loss can occur and many penny stocks lose all of their value in the long term. Accordingly, the SEC warns that penny stocks are high risk investments and new investors should be aware of the risks involved. These risks include limited liquidity, lack of financial reporting, and fraud.

Almost any Internet user with an e-mail address will have been exposed to penny stock promotions through e-mail spam.

In the U.S. financial markets, the term penny stock commonly refers to any stock trading outside one of the major exchanges (NYSE, NASDAQ, or AMEX), and is often considered pejorative. However, the official SEC definition[1] of a penny stock is a low-priced, speculative security of a very small company, regardless of market capitalization or whether it trades on a securitized exchange (like NYSE or NASDAQ) or an "over the counter" listing service, such as the OTCBB or Pink Sheets. The terms penny stocks, microcap stocks, small caps, and nano caps are also all sometimes used interchangeably, however per the SEC definition, penny stock status is determined by share price, not market capitalization or listing service.

Penny stocks generally have market caps under $500M and are considered extremely speculative, particularly those that trade on low volumes over the counter. The Securities and Exchange commission warns that, "Penny stocks may trade infrequently, which means that it may be difficult to sell penny stock shares once you own them. Because it may be difficult to find quotations for certain penny stocks, they may be impossible to accurately price. Investors in penny stocks should be prepared for the possibility that they may lose their whole investment."

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/4ed13

Answer 6

Penny stocks are lower priced stocks of newer and riskier companies. The investments in penny stocks are risky and many of the companies don't grow or go out of business. If you pick the right ones, they can sometimes grow spectacularly.

Answer 7

I don't know anyone other than penny stock salesmen and brokers who get rich on penny stocks - remember you get what you pay for in life.

Answer 8

they are stock issued for new enterprising companies and usually start out around a dollar a share -- for every one that hits big 10000 bite the dust!!! might be just a little better that shooting craps!!!