One of the infamous topics of today is on penny stock investments. Some people may have been made aware of this industry from broadcast media, the morning newspaper or from the internet. People should also beware of people with criminal minds like scammers and fraudsters lurking around in search of victims. This is what actually gave penny stock investments a very bad reputation.
Boise, ID -- (SBWIRE) -- 02/04/2016 -- One of the infamous topics of today is on penny stock investments. Some people may have been made aware of this industry from broadcast media, the morning newspaper or from the internet. People should also beware of people with criminal minds like scammers and fraudsters lurking around in search of victims. This is what actually gave penny stock investments a very bad reputation.
The truth is that penny stocks can really be attention-grabbing and can easily lure people to invest because they attack a basic human nature called greed. It is a fact that when people hear of huge financial gains, they can't help but be magnetized by the promising profits.
However, what's best about investing in penny stocks is that the chances of getting more profits are greater and much faster because people would not have to put out that much cash to purchase a stock. Penny stocks are being traded for less than $5 and sometimes even less than a dollar unlike other huge stocks amounting to hundreds of dollars per stock. Initially, the investment may seem minor, but the exchange rate a stock can be traded will be of great role and influence on the risks of the investment.
The risks of investing in penny stocks are as follows:
1. The stocks are easily manipulated
2. The investments are extremely volatile
3. There are pump and dump schemes
4. Low regulation
5. The Pink Sheets and OTCBB are very risky
6. There are a lot of penny stock frauds
However, investing in penny stocks can also be very rewarding primarily because investors can have really great financial gains from penny stocks that don't involve a lot of money. Some people get rich really quickly and this is the main attraction for most investors.
The very reason for this is because these types of investments are issued to leverage the equity capital especially for small struggling businesses that are just starting or are just emerging from bankruptcy. Stocks are being sold at a minimum because of financial instability; however, if investing mainstreams have discovered them, then the price of the stocks will dramatically be escalated in just a matter of weeks or days.
Choosing the best penny stocks to invest in is the one of the primary tactics because investors can hold huge amounts of stocks because of the cheap-priced shares that can be availed. In fact, there are shares that could amount to as low as 50 cents and if the price climbs up to even just $2 per share, then this is a clear profit especially when the number of shares bought is of large-scale.
About Affordable Stock
Hello and welcome to Affordable Stock, your home for the best penny stock picks. We have been helping people just like you succeed in today's market since 1999. We specialize in penny stock picks that will make money for you in the shortest time possible. We only deal in hot penny stocks that are listed on the exchanges.
We don't deal in "Over the Counter Stocks, "Bulletin Board Stocks" or "Pink Sheet Stocks" which all tend to have more fraud and scam tendencies. We analyze thousands of penny stocks each day to find the ones that are oversold and ready to bounce back. Please check out our history to see for yourself just how good we really are.
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