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Old 05-14-2011, 05:51 PM
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dimetime dimetime is offline
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Default Penny Stock Information

For anyone who is wanting to get into stocks, penny stocks could be the way to go.

Here is some useful information on penny stocks or also called cent stocks in some places.

Penny stocks are stocks from small public companies normally costing one dollar or much less per share. These stocks can be subjected to price manipulation.

Price manipulation is when either an organization of some kind or even a person purchases hundreds or even hundreds of thousands shares then turns around and uses press releases which are faked, websites and even at times emails to drive up normal intrest in the company. When this happens the one who purchased all those shares waits til the prices in the stock increase and then sells making a huge profit all on faulty information.


So there are still risks even dealing with penny stocks and everyone intrested must be prepared for their shares to go either way.

Yet because these stocks are sold at such low prices they are more easily affordable to anyone wanting to get into the market, and if things don't go as well as expected it means that there aren't huge loses as well.

I like the idea of penny stocks, I recommend them to friends who mention they have an intrest in the market, however penny stocks aren't for everyone and as always research and knowledge is needed.
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