[mage lang="" source="flickr"]penny stocks expert[/mage]
Question about a certain stock situation?
Hey guys. I’m pretty new to the whole stock scene, and I’m not necessarily looking to get “rich quickly”, but I would like to familiarize myself. Say there is a penny stock that is of a company that filed bankruptcy, but is being “bailed out” by someone else so to speak. If the stock is quite cheap, would it be alright to spend a little bit of money to see how it plays out? I’m just looking for an experts point of view and appreciate what you guys know and have learned.
Also, it seems to me that in order to make money via the stock market you need to have a hefty amount of principal to invest. I’m definitely not rich which 2000$ to immediately invest with (although I wish). Can progress still be made with small amounts to invest with? I’m saying this because sucessful stocks like Apple are 200+ a share, so I would be doing well just to get 1 share of apple
Stay far away from companies in bankruptcy. 9 times out of 10, the stock will be canceled. Even if “bailed out” by someone else. That other company does not want the debt of the bankrupt company. All remaining assets of the failing company will be used to pay off bond holders and stockholders will get ZILCH.
If you have $2000, you can get 9 shares of apple. Or did you make a mistake and only have $200?
As a starter, you should invest in a well diversified mutual fund. Most have a minimum of $2500 but Schwab has a total stock market index fund you can buy with a minimum of only $100. Start with a diversified “nest egg,” then safe up to invest in individual stocks.
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