close
Penny Stocks and How They Work
The term penny stocks is not exactly a true meaning of a penny stock. The term is generally referring to shares that have a relatively low value and market capitalization and generally they are placed outside of the major market exchanges that we are familiar with. Many think that they are worth pennies and others consider them to be any stock that is trading outside of the major exchanges. Typically they are a very small company with speculative shares and are generally not governed by regulatory standards and they will be subject to limited listings.
Financial analysts will use certain criteria when assessing a stock and determining its value. Some will use the price of the share itself and some use market capitalization of less than 100 million.
Investing in penny stocks has become a lot more common in recent years largely due to the trading platforms that are not available on the internet, many of which include a penny stock chat room which enables investors to share tips and advice.
Whilst the thought of trading sounds and can be very exciting it is also a very volatile market. Having said that there are potentially some big profits to make from investing and the margins can be quite large. For example a new company may have a small share value of fifty pence or fifty cents, depending on the currency you are trading in and if that company was then to do well and the share value increased by a further fifty this would result in achieving the investor a 100% profit. This is why it has grown in popularity over recent years and is still continuing to do so.
If you are new to penny stocks and you are interested in trading and investing then it would be wise to research it thoroughly. You can do this by researching online and perhaps become a member of a penny stock chat room. This will give you a good feel for how it works and enable you to learn from people that are actively investing in penny stocks. It does require some knowledge before entering the world of trading, whilst many consider it to be a low value in terms of share prices, there are still many that have lost a lot of money by investing in a lot of shares that have lost their value.
Penny stocks are exciting and can also be very profitable, however individuals will want to ensure they have enough capital and remember that they are entering a volatile and risky market before investing. Unfortunately it is not a stable market and therefore no guarantees can be made on how much money can be made by any individual on any company share price.
Stock Traders Talk is a network of investing penny stocks traders offering real time message boards and Live chat rooms. Stock Traders Talk also has a radio show airing Monday- Thursday at 8pm EST.
Tags: Penny, Stocks
View this post on my blog: http://stocktips.valuegov.com/penny-stocks-and-how-they-work/
全站熱搜
留言列表
