- Penny Stocks are dirt cheap stocks of companies with small market capital.
- They are mostly speculative and are in need of venture capital.
- They dont trade on major exchanges. They are traded on OTCBB.
- Stocks between 5c and $5.00 per stock.
- Have suffix ".OB" for ticker symbol
- Some stocks below $5 on major exchanges
- Mostly new age, non main stream technologies and new ideas like alternative energy, nano technology, stem cell research etc..
Why Trade Penny Stocks?
- Cheap
- Potential for HUGE gains
- Easy to get started with a small amount of capital
- With Penny Stock YOU have buying power!
Why to be cautious in trading Penny Stocks?
- Dangerous as they are extremely risky
- Chances for HUGE losses
- Most are Start-up companies. So they dont have any profit or even products
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