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Penny Stock Market Research Paper

Satisfactory Essays

ALL ABOUT PENNY STOCKS...THE RISKY REWARDS!!!
By Natalia Deasia
Mar 24, 2013
Penny Stocks also familiar by the name cent stocks are regarded as highly volatile and very risky investments in the stock market. They are often hard to analyze and cost even less than a dollar. Therefore they are considered as risky rewards. Greater extents of these stocks are owned by the promoters, who may sell them at any point of time. And so they are considered risky. But here is some information about trading on these small cap stocks.

WHY PENNY STOCK TRADING:

It is an open fact that investment in penny stocks is often risky and we gain very minimal profit on the investment as returns. Then a query arises in everyone's mind that why penny stock trading? Here …show more content…

Therefore low priced shares are never a burden and so one can make good money if they invest minimum amount in penny stocks.

STAY IN TOUCH: Often an individual experiences great losses in the share business because of the lack of information. Therefore, the best tip to consider while investing is to stay thoroughly informed, which is possible only through extensive involvement.

THINK TWICE BEFORE YOU INVEST: Penny stocks are considered pretty volatile and their price can be easily manipulated by the dealers. Therefore, don't get carried away easily but think twice before you invest. Understand about why penny stock trading, and then in case in case if you are investing on an unknown stock only consider recommendations but not requests. This might help you from getting duped and thus protect your finances.

LEARN ITS HISTORY: Even before making an investment on the stock, know its past history of at least 8 months. One should understand that penny stocks have several sellers but pretty fewer buyers. So just because it is available at a cheap price do not make the investment but know its history and then proceed

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