Penny Stock Site- Custodial Account and $1000?
I want to make an account on a penny stock site that has low commissions and doesn’t charge tons if monthly fees and surcharges. I only have $1000 and want to learn the market, starting with Penny Stocks then moving my way up. I am under 18 so it would need to be a custodial account.
Short term investments on stocks like incc
My recommendation is not to invest in penny stocks, which is an outright speculation. About 95% of all penny stocks disappear within 3-4 years. Less than 1 in 100 is an outright home run and turns into something big. The reason those are penny stocks is because they have no or little revenue, no earnings, a poor business plan and often are run strictly for the benefit of its officers which bleed the company to death with high salaries. Start out with a low cost general market index mutual fund (e.g. Vanguard, etc.) and move up from there to individual stocks as you learn more about the market.
Update Edit: OK Tommy, I looked at INCC and that company is a poster child of poor management. Its 52 week high was $0.30 and today it closed at $0.0002 or 2/100 of a penny. So it lost 99.93% of its value in less than a year. The company has no business, no income, no cash nor any other assests what-so-ever and may not exist at all next month. With a single dollar you can actually buy 5,000 shares. Of course it is possible that some penny stock newsletter hypes the stock after they first bought up tens or hundreds of millions of shares at next to nothing. The stock might rise back to a penny a share, while the promoters merrily unload their shares on unsuspecting investors in what’s called a pump and dump operation. While that practice is illegal, the SEC unfortunately rarely prosecutes the promoters so they continue doing it. So if you want to gamble, take $200 and buy yourself a cool 1 million shares of INCC and perhaps you can unload them for $10,000. Anyway gives you some bragging rights as a big time investor with your friends. But your odds are definitely worse than shooting craps, but are about as good as buying lottery tickets. So you can have some fun and if you lose out altogether, then you simply write it off to experience and you won’t be able to buy that next game for your X-Box.
Free Stock Simulator Account