I want to Investing in penny stocks
NEW YORK (TheStreet) - It is hard to check your mail without reading in regards to the after that "hot" penny stock that's going to turn you into rich. Exactly what are very cheap stocks, and can they really deliver on those claims? Here is my 2 dollars worth on very cheap stocks.
What Exactly Are Penny Stocks?
Low-priced, small-cap stocks tend to be called small cap stocks. Despite their particular name, small cap stocks hardly ever cost a cent. The SEC views a cent stock become virtually any such thing under $5. Although you will find sub $5 shares exchanging on huge exchanges like NYSE and NASDAQ, most investors do not think of these when asked to spell it out a penny stock.
Many specific investors evaluate penny stocks like Wall Street's crazy West, a wild world of trading detached from all of the glitz and news coverage that is included with stocks which can be exchanged on major exchanges. As the gains and losings are pretty impressive into the penny stock world, they are seldom heard about elsewhere.
Just because you don't read about very cheap stocks everyday on CNBC does not mean that very cheap stocks tend to be without crisis. Unfortuitously, penny stocks have also garnered a reputation as a casino game filled up with scams and corruption. Indeed, penny stocks might be your wildest trip however as an investor.