Penny Stocks 101

We'll Teach You All You Need to Know About Penny Stocks penny stocks Penny stocks offer a great opportunity for beginning and seasoned stock market investors alike, but here we'll start at the beginning. So what are penny stocks? Put simply, they are shares of a company which cost less than one dollar.

Some definitions classify them as shares costing five dollars or less so there is some room for debate, just as there seems to be with anything these days. Some are quite literally stocks costing a penny or less per share. As with all aspects of the stock market, there are risks and rewards that come along with investing in penny stocks. Buying these smaller stocks is attractive for many people because of the fairly low costs and the potential for huge gains.

Many major corporations like GM and Ford began their life as penny stocks. Penny stock investing can obviously pay off huge, since the shares you buy for a dollar or even for pennies can eventually be worth hundreds. The gains often come quick, as well.

But since these stocks usually represent small businesses just emerging onto the marketplace, there are risks too. According to the SBA, more than fifty percent of small businesses fail within the first five years of their existence. Due to the high chance that a business will fail, and conversely because it has the potential to become a multi-national conglomerate, buying penny stocks can be a tricky affair. penny stocks Yes, your investment can be low and the reward high. But the chance of losing your entire investment is also very real. A shrewd eye and reliance on professional tips can help you buy the best penny stocks and actually see a profit from your investments.

Personal judgment does play a factor, but keeping a close eye on the market and trusting a few trustworthy advisers can help you buy penny stocks that perform well. We can give you advice on which penny stocks are the best bets on the market. Buying penny stocks is fairly easy thanks to the internet. A number of excellent online companies will allow you to set up an account within a few minutes and begin buying and trading penny stocks in no time. And any skilled, trustworthy broker can help you with the process as well.

The actual purchase isn't the hard part, obviously, selecting the best stocks is. In most cases, short term investing should be applied to penny stocks. Buying low and selling high is obvious, but holding on to your stock too long will run the risk of costing you in the end. We can help you through every step, from learning the basics of penny stocks to supplying lists of the current hot penny stocks.