mercredi 22 juillet 2009

Penny Stocks - Are They Too Risky?

00:36 Posted by: Marokko Suche 0 comments

By Marco Davies

The expression 'high-risk investment' often sounds alarming, and frequently this phrase on its own is sufficient enough to put a good many investors off - because at the end of the day few savers wish to take the risk. The concern with purchasing any form of stock (high-risk or not) is that it is invariably a gamble.

There is a great deal of information swimming around on the Internet regarding penny stocks. Just about everyone with an e-mail address has received spam at some time or another, touting them as the next extraordinary investment funds. Regrettably, much of this info is pitched toward defrauding you in some form or another, and it's in all likelihood that you will lose your funds that you set up into the shares advertised in this manner. This is not an indication that all penny stocks will be bad trades, or that every individual investment is a con, in fact, far from it as some may be very profitable.

Penny stocks are affordably valued stocks or shares in companies or business enterprises that are thought of "small," as opposed to large corporations. There are not that many shareholders involved, making them less 'fluid' than many other varieties of stock. The object of speculating in penny stocks it to spend only a tiny amount of money in the beginning to savor a big return subsequently, but does it work this way? It does, now and again, just not regularly but for people who know what they're doing when they invest, they can be a great investment funds instrument. Dominating the art of dealing in penny stocks can be awkward, nonetheless.

Basically, penny stocks don't trade on the major stock exchanges, rather, they are acknowledged as "over the counter" investments, listed on Pink Sheets and the OTCBB. This makes them rather extraordinary, and somewhat more difficult to locate for a good many speculators. Penny shares also do not trade very frequently, so now and again investors have very little time to act. Because trading doesn't occur often, there is always the fear of being not able to trade one's stocks and landing up with a poor investment funds. This is just all part of the challenge of dealing in penny stocks, and numerous speculators consider this makes the game all the more intriguing. When you invest, you should get monthly updates that inform you of how your stock is managing.

Some people consider penny stocks too dodgy but the only individual who can determine that is you. It all comes down to how much gambling with your money you wish to do, just how much you are aware penny stocks, and how fortunate you feel. If you believe speculating your funds in penny stocks is a good idea, then it probably is but everyone has a different opinion so learn more about them, and create your own views.

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