Should I Invest And Buy Penny Stocks?

Should you buy penny stocks? That's an excellentare listed on an exchange that isn't well known,
question. Let's look at some of the pros and cons.they are probably not subject to all the minimum
First of all, what is a penny stock? In the Unitedstandards and listing requirements that other
States, it's a stock that's worth less than $5 perstocks are held to. This means that they aren't as
share, regardless of the market. On the otherstable.
hand, the term can also apply to any lower pricedAnother thing: Penny stocks are a great source
and easily manipulated stock. It will often refer toof income for fraudulent individuals. This is due to
a stock sold outside NYSE, NASDAQ, and MEX,the stock's less known status. Many of these
the three major stock exchanges.same people have misled investors through
Because they're priced so cheaply, penny stocksinternet message boards and spam emails.
are a very tempting way to break into the stockThey get investors to pour huge amounts of
market. Another reason they're attractive ismoney into a stock that has no real potential for
because they could dramatically increase in valuegrowth, and then selling their own shares when
in short order. But they also have a huge potentialthe price rises. "Pump and Dump" is the name of
for steep losses for the same exact reason.this infamous scheme. It has emptied the pockets
If you buy penny stocks, you may find that theyof many a naive investor and lined the wallets of
are harder to sell than you anticipated. Thesethe fraudulent.
stocks have fewer investors interested in them,You might be tempted to buy penny stocks for
so they are not traded as often as higher-priced,their great prices. But be careful: Keep in mind all
popular stocks.the possible pitfalls before you invest any kind of
On top of that, if the stocks you're looking intomoney.