In today's market, there are always up and coming penny stocks to watch. Investors are intimidated by the high prices of stock on the NASDAQ and NYSE. Instead of investing huge amounts of money in blue chip stock, they are turning to their small business counterparts on the penny stock exchanges. These penny stocks are known for their rapid growth and ability to make a lot of money in a short period of time. However, this market is better known for being the highest risk investment you can make.
Let's face it; most of America is fighting to survive the current recession. Those who have money are not confident in traditional stocks. That low confidence makes it very hard to part with the $5,000 or more required to buy 100 shares of many popular stocks on the NASDAQ or NYSE. The penny stock entry costs of $200 to $1,000 are much more acceptable when times are tough.
Most of America is sick of seeing corporate executives being paid hundreds of millions every year to run a company. What's worse is the behavior of these large companies. They have been greedy years and are now paying the price. Many of them are being bought out by competitors for pennies on the dollar. Either that or they are just going belly up as a result of decades of corruption. It's not surprising that American investors are looking for a better place to invest their hard earned money.
On the other hand, the penny stock market is made up mostly of small businesses like the farm down the road or a family run oil company. They are good hard working people who make a living running the small businesses in this market. They general take their company public for one of three reasons: They need funding to expand their small business. They need a tax break and want to share their profits with employees or other people. Or they were scammed by a penny stock broker into a costly IPO and can't back out without losing their company.
This growth is usually slower than that of their large business counterparts, as is the growth of their stock value. However, overtime that growth can add up. Further, some companies on the penny stocks will grow naturally from a small business to a large player. Along the way, the value of the stock in the company will grow too. When this growth happens it's usually very quick. Sometimes it will plateau in as little 24 hours, so penny stock investors have to be prepared to sell quickly.
Just be careful when investing in penny stocks. These companies aren't as well regulated as the big boys on the stock exchange. Because of this lack of oversight, it's easy for people to game the system and make it look like a company is growing fast. When they do this, the stock prices rise. At some point in time, these scammers dump their shares at the new rate and walk with the cash. This can make your shares worthless overnight.
In general, there are several penny stocks to watch. Each of these is a great long term value. They provide a chance to make a quick return on the market. Beyond the return, they also offer investors a chance to help the small businesses that carry the US economy. They even make us feel better about our investments by rooting for the underdog. However, there is a great deal of fraud in this market, so you have to watch your investments closely. If a stock sounds too good to be true, its most likely a scam. - 31876
Let's face it; most of America is fighting to survive the current recession. Those who have money are not confident in traditional stocks. That low confidence makes it very hard to part with the $5,000 or more required to buy 100 shares of many popular stocks on the NASDAQ or NYSE. The penny stock entry costs of $200 to $1,000 are much more acceptable when times are tough.
Most of America is sick of seeing corporate executives being paid hundreds of millions every year to run a company. What's worse is the behavior of these large companies. They have been greedy years and are now paying the price. Many of them are being bought out by competitors for pennies on the dollar. Either that or they are just going belly up as a result of decades of corruption. It's not surprising that American investors are looking for a better place to invest their hard earned money.
On the other hand, the penny stock market is made up mostly of small businesses like the farm down the road or a family run oil company. They are good hard working people who make a living running the small businesses in this market. They general take their company public for one of three reasons: They need funding to expand their small business. They need a tax break and want to share their profits with employees or other people. Or they were scammed by a penny stock broker into a costly IPO and can't back out without losing their company.
This growth is usually slower than that of their large business counterparts, as is the growth of their stock value. However, overtime that growth can add up. Further, some companies on the penny stocks will grow naturally from a small business to a large player. Along the way, the value of the stock in the company will grow too. When this growth happens it's usually very quick. Sometimes it will plateau in as little 24 hours, so penny stock investors have to be prepared to sell quickly.
Just be careful when investing in penny stocks. These companies aren't as well regulated as the big boys on the stock exchange. Because of this lack of oversight, it's easy for people to game the system and make it look like a company is growing fast. When they do this, the stock prices rise. At some point in time, these scammers dump their shares at the new rate and walk with the cash. This can make your shares worthless overnight.
In general, there are several penny stocks to watch. Each of these is a great long term value. They provide a chance to make a quick return on the market. Beyond the return, they also offer investors a chance to help the small businesses that carry the US economy. They even make us feel better about our investments by rooting for the underdog. However, there is a great deal of fraud in this market, so you have to watch your investments closely. If a stock sounds too good to be true, its most likely a scam. - 31876
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