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What’s really wrong with penny stocks?
I keep hearing that its foolish to buy any stock that’s less than 8 or 10 dollars a share. “Its cheap for a reason” they argue. My thing is, they’re partially right. The stocks are cheap so there isn’t much to lose. If I buy 10 shares of a $1 stock the most I could lose is $10 dollars. Even if the odds of making significant gains is 100 to 1, I still have a better chance of getting rich then with a $100/share stock if all I could afford to lose is 1 or 2 shares.
accually most dont pay dividends. Google, Apple and Microsoft don’t
Simple: you lose that money just as fast as you can make it. They don’t have enough history and are way too risky.
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