Penny Stock Fundamentals

Penny Stocks are listed differently than the major stock exchange listings. They are mainly traded over Pink Sheets or Over The Counter (OTC) board. These stocks are usually traded with low price per share, but there are in huge volumes. People make investments in huge numbers and there are millions of people getting penny stocks for getting increase in money.

Do you think that Penny Stocks will fetch you money?

People have different views with regards to this statement. There are many people who’ve actually lost their hard earned money in these stocks due to manipulation by stock brokers. You can find hundreds of companies for penny stock investments, but there are only a few groups actually leading towards growth of your funds.

These stocks are NOT included in the major stock exchanges and this is the main reason for their failure.

There is less security in investing in penny stocks and you can’t get guaranteed investment in a rewarding company. Some of the companies are actually fake and determined to make fool of the innocent investors.

Penny Stock Fundamentals

Penny stocks are also termed as small caps, micro stocks, nano stocks and mini-cap stocks. The main definition remains the same in all the countries: Low market capitalization of the company and low per value share. These shares are traded on pink sheets or Over The Bulletin board. The main focus for buying these shares is that they don’t have mentioned regulations on stock exchange platforms and don’t require showing their legitimate status. There are many investors interested in penny stock investments for the reason of low investments, but they might not be aware of the fact that these companies might be a fraud case.

However, don’t panic! There are many good companies having higher prospects to grow from the beginner levels. If you find facts regarding any new company originating newest penny share for the sake of growth, you should invest at least some amount in it for better ROI.

Leave a Reply