Tuesday, September 18, 2012

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Penny stocks, also known as cent stocks, are the common shares of small public companies that trade for less than $ 5. Penny stocks are considered highly speculative and high risk but have a large potential for profit. Many investors like penny stocks as they do not require a big cash outlay to get started and investors can own a piece of a good company inexpensively. The upside of penny stocks is the ability to turn a small investment into a fortune. The downside is the volatility of the shares and the lack of corporate transparency. Even companies like Playboy, Ford, GM and Xerox used to be penny stocks.. However, they are buy aqua sea uggs australia boot on big sale very unpredictable and lack corporate transparency and do not have to file the same recording of public records as other stocks on larger exchanges.

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