Penny Stocks – Making Money with Low-Cost Investments

What Are Penny Stocks?

Penny stocks are a type of stock that trades for very low prices – usually under $5. They are typically traded over the counter, rather than on major stock exchanges, making them a risky but potentially lucrative investment. Penny stocks can be an attractive choice for those looking to build a portfolio on a budget, as even a small investment can yield huge returns.

Are Penny Stocks Worth Investing In?

Penny stocks can be a great way to get started in the stock market, as the low prices mean that even a small investment can yield big returns. However, it’s important to remember that penny stocks can be extremely volatile, and the potential for huge returns comes with the risk of huge losses. It’s important to research any potential investments thoroughly, and only invest an amount of money that you’re comfortable losing.

Where Can I Find Penny Stocks?

Penny stocks are typically traded on over-the-counter markets, or “OTC markets”. These markets are not regulated in the same way as major stock exchanges, so it’s important to do your own research and be aware of the risks. It’s also possible to find penny stocks on major exchanges, although these tend to be less volatile and risky than those found on OTC markets.

How Do I Research Penny Stocks?

When researching penny stocks, it’s important to look at the company’s financials, news, and performance history. It’s also important to consider the sector that the company operates in, and how the stock has performed in the past. By researching the stock thoroughly, you can make an informed decision about whether it’s a good investment for you.

How Do I Buy Penny Stocks?

Most online brokers will allow you to buy penny stocks, although it’s important to check their fees and commissions before opening an account. When buying penny stocks, it’s important to remember that they can be extremely volatile, so it’s important to only invest money that you’re comfortable losing. It’s also important to remember to diversify your investments and not to put all your eggs in one basket.

Example Penny Stocks

Here are three example penny stocks:

TALO: Talon Therapeutics, Inc.
GOLD: Golden Bull Limited
CELG: Celergen Corp.

The Bottom Line

Penny stocks can be a great way to get started in the stock market, as they offer the potential for huge returns with a relatively small investment. However, they are also extremely risky, and it’s important to research any potential investments thoroughly before investing. Remember to diversify your investments and only invest an amount of money that you’re comfortable losing.