Stock Penny

stock penny
Someone please explain what penny stock are?

I’ve read that penny stock are not regulated and have a high risk of fraud. Does the con out way the pros. Which one of the high players offer penny stocks?

Yes penny stocks are stocks that sell below $5 only because stocks under $5 are not marginable. nor do they usually have any loan value with banks and other financial lending institutions.

Penny stocks are regulated BUT the markets in which they trade are not.

When you invest/trade in penny stock you should never put up more than you can afford to loose and you should assume you will loose it all. Unlike regular securities, penny stocks usually do not let you use risk cutting procedures (options and/or stop orders) since most are not traded in a regulated market place.

They say when you buy securities you have a 50%-50% chance of making money, when you buy penny stocks you have a 50-50-90% chance, 50-50 chance of making money and a 90% chance of loosing money.

When buying penny stocks, like any other security investment, you never invest 100% of you investing capital. Penny stocks are fun to trade, but you should never count on them to be considered part of your primary investment objectives.

All that said, here are some websites that you will find helpful

Tim Sykes Live Penny Stock Trade Profiting $4k From Rome, Italy Suite

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