Shares/Stock What is penny stock?

[Lens1000]

Penny stocks are stocks that are issued by companies that their fnancial stability are not guaranteed and they are often emerging companies. The penny stock are traded less than $5 in the floor of the stock exchange market per shares. It is totally different from the blue-chip stock whose risk is very low.

In penny stock, the risk that is involved is extremely high and it is a stock that is meant for those who are read to take high level of risk. It is issued by companies that is just emerging and that you rarely know about. The penny stock are dubbed to be a speculative instruments.

The penny slot is risky than blue chip stock, mid-cap stock and small-cap stock because the company's financial stability is not yet known and it is an emerging company. The blue chip stock are issued by company whose financial stability is well-established and grounded . Buying such stock would take a little risk and they are blue chip stock, mid-cap stock and small-cap stock. Because the risk that is involved in penny stock is very high and they are often bought by the investors who can take some certain level
of risk .

 

[Suba]

Penny stocks are a scourge for me, because there is full speculation that the probability of success is 50%, many investors lose money after buying in large quantities. Even though the price of penny stocks is quite affordable for retail investors because if we buy 10 slots we only need around $5k in cash, not all stocks with low market capitalization (penny stocks) are unprofitable, especially if they have been manipulated by whales.
Because of this, many experts recommend that novice investors not buy penny stocks. But if you are interested, you can try investing in stocks carefully and pay attention to several factors, such as considering the number of outstanding/available shares. stock liquidity, the risk of dilution if many shares have been outstanding.

 

[uptrendfinancialsignal]

It seems adopting the penny stock as a retail investor would be the best bet but before that could be done, there should be necessary assessment of the stock to buy so that you'll be able to understand the ins-and-outs of the company that you want to buy their stock. Carrying out a proper assessment of these would give you opportunities to take the right decision because the retail investor cannot invest in blue-chip stocks because of the price that is involved a penny stock can be traded as low as $5 which makes it the choice of many retail investors.

 

[Jasmine]

Penny stocks are issued by small, newly formed companies with limited track records, and they typically have a lower market capitalization and limited liquidity compared to larger, established companies. Because of these factors, penny stocks are often considered to be higher risk investments and can be subject to high volatility, manipulation, and fraud. As a result, it's important to exercise caution when considering an investment in penny stocks. Investing in penny stocks can be risky and can result in significant losses. While it's possible to make money from investing in penny stocks, they often trade at low prices for a reason and can be subject to high volatility, manipulation, and fraud. .

 

[Mika]

Not all penny stocks are profitable, and not all penny stocks are legit; however, it is also true that penny stocks have the potential to make a lot of money for investors. One of the biggest problems with penny stocks is market manipulation by the whales. There are whales hoarding a lot of penny stocks, once, the investors start investing, these whales start selling these stocks, and the price starts going up, when the whales finally sell all of their portfolios and move on the new investors will end up having a lot of penny stocks with no potential buyers.