Want to buy penny stocks online? The key to the stock market, is knowledge. Let's start with what is a penny or micro cap stocks? A penny stock is an action that has a value of $ 5 or less over the counter, also known as the counter market and micro-cap by Pink Sheets and / or appointments. In this article, the reasons to buy penny stocks are discussed.
Micro cap stocks can be an excellent investment for an investor, this type of stock usually purchased by sophisticated investors and experienced to a greater extent than novices, although many beginners are actually buying them down as prices per share makes them very attractive to an investor. Most people like to start at a low price so they do lose a small amount.
Buying penny stocks can provide investors a high return, because an investor can come out on top with the purchase of these stocks due to low stock price, changes in the stock rise may be hundreds or thousands percentages in a few days. Let's say you buy a title for Micro Cap € 3, then there is a big step for investors to buy, or a good thing to happen to the company's stock you bought, and shoots up to $ 6 per share, boom, you have doubled money, in other words, is an emerging market, you can do a lot of money. Mainly in penny stocks can be a big part of the portfolio of a savvy investor, but it is not advisable for a new investor can only micro-cap equity portfolio.
Micro cap stocks are considered one of the riskiest investments in the same time as likely to be one of the most profitable investments, the reason is because they are traded on the OTCBB and pink sheets. The OTCBB and Pink Sheets have very low listing requirements as opposed to the New York Stock Exchange and Nasdaq. Since companies are usually new they can not provide enough economic history. Or the company is near bankruptcy, which can cause both low trading volume. Another reason for the penny stock market is risky because of all the fraud out there. It gives people the opportunity to purchase large quantities of shares to manipulate the market and then sell them to inexperienced investors, and when they sold stock shocks.
If you are an investor, consider buying penny stocks, as has been said that can be a very profitable investment, but are risky as any other investment. Be sure to research the company before buying their actions, nothing is guaranteed in stock investments and you can lose everything you put in. You can do a lot of money to buy penny stocks, which is enough to investigate a lot.
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