Cheap Stocks

Another name for cheap stocks is penny stocks and they are available for people to buy. Penny stocks are those stocks for smaller companies that are not large enough to be featured in the large stock exchanges like the NASDAQ or NYSE which usually only feature companies which are worth more than $50 million or so. These penny stocks are still handled by some stock brokers though but unlike the larger companies on the larger stock markets, they do not come under the control of the Securities and Exchange Commission (SEC). This means that these smaller companies do not have to give the details of their company as required by the SEC. This means that investors in the penny stocks often are investing without good knowledge of the company they are investing in which has caused some people to liked investing in penny stocks as gamblers more than investors. It is possible though to make money on these investments and some have even made millions, known as penny stock millionaires. The number of people that do make money on penny stocks though is considered to be only 10% of the total number that do invest, meaning that 90% of the investors lose their money. There is an official website for penny stock investors which explain the process better but basically penny stocks do allow people to start to try and invest with far less money than they would need to invest in the larger stock exchanges. Although all penny stock investors would like to make a million dollars some only try to make enough so that they can start investing on the larger stock markets. Whatever your motive for investing in penny shares, you should be prepared to lose your investments and join the 90% but if you do have some money to spare then penny shares can have very large dividends and so follow the adage to make money you must be prepared to take a gamble. Perhaps one thing to remember is that even the largest of companies would have started small at one time and anyone that invested in them when they were small may have made some very big money as they grew. Those people that have had success in penny stocks have usually said that they followed a strategy but will rarely say what that strategy was. It seems apparent though that if you can devise a reasonable strategy and stick to it, you probably have a better chance of success and who knows you may even become the next penny stock millionaire. It is perhaps important though to find a way to try and learn more about the companies that you invest in as that will always be of benefit to you. Investments in penny stocks can be as low as just pennies and hence their name but of course, the more you invest the better chance you have of success but then again, the more you stand to lose if your chosen strategy does not work.
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