Skip to main content

Penny Stocks: Are Penny Stocks Dangerous


If you’ve heard anything about penny stocks, it’s probably that they’re a bad investment, or an Internet scam. There’s a lot of bad hype out there concerning penny stocks, and the bad rap has made many investors shy away from using penny stocks at are. But, are penny stocks dangerous to investors?


Penny stocks  have a bad reputation for a number of reasons, not the least of which is that penny stocks are often used as a part of Internet e-mail scams.  Nearly everyone has been exposed to these mails, which claim to offer cheap penny stocks that will bring a large return. But in truth, this is a scam, and will only cause you to lose your money.

This is one of the reasons that many try not to invest in penny stocks. But penny stocks are said to be a “high-risk” investment, which turns many people away from investing as well. After all, the words “high-risk” sound pretty scary…especially when it’s you’re money, right? High-risk means there’s a good potential to lose money, and no one wants that.

There are some advantages to penny stocks, however, and they can bring in a good return. In fact, penny stocks can be incredibly lucrative, and many investors choose to take the risk on penny stocks in hopes of getting a very large profit in the end. With penny stocks, investors often have to act quickly, as penny stocks infrequently trade.

This infrequent trading is one of the reasons that penny stocks are considered to be high-risk investments. It’s hard to sell stock that doesn’t trade very often. In the U.S., the term “penny stocks” is often applied to those publicly-traded shares that do not go through the major stock exchanges (NYSE, NASDAQ, or AMEX, for instance). Trading in an unsure market makes many investors leery of trying penny stocks out for themselves.

But for those who know how to finesse their stocks, penny stocks can bring in a good return, and this is what makes many investors bold enough to try them out. Are they risky? Yes. Are they unsafe? Not really – unless you invest in penny stocks that you find advertises in your e-mail. Don’t trust these spam messages, find your own penny stocks to invest in. 

There are plenty of good penny stocks out there to invest in. It’s just a matter of finding them. Check business journals and talk to your stock broker if you have one. These are both good ways to find out about new penny stocks. Penny stocks are often cheaply bought, and in the best-case scenario are then sold for great profit. It’s this hope of a large return that keeps many investors coming back for more, buying more penny stocks, and hoping. When suck a prize awaits, many are willing to take those high risks. 

Only you can decide if investing in penny stocks is right for you. Look into the stocks you want to buy before purchase, and make the decision for yourself – not for anyone else. When you decide your own financial fate, you enjoy the returns that much more. 

Comments

Popular posts from this blog

Project on Indian Railway Reservation

Introduction Microsoft Access is a relationship data base management system through which you can have multiple tables, all linked to each other through a common field, each table containing a specific type of information. For instance you can have one table containing a list of all the items that you sell, another table containing information about which item can be procured from which supplier another table containing orders for different items received from different customers and yet another table containing basic information about customer themselves and all this table can be linked together though common key fields.

B.Com V Semester Degree Examination ECONOMICS, Business Environment Question Paper Gulbarga University

  2K9     B.Com V Semester Degree Examination ECONOMICS Paper – 5.4 : Business Environment   Instruction : Figures to the right indicate full marks.   SECTION-A Note : Answer any ten questions:                                               10x2=20 1.                   What is business environment? 2.                   Write the meaning of under development. 3.                   What is disguised unemployment? 4.         ...

حضور اکرم صلی اللہ علیہ وسلم کی مکتوبات نگاری

 حضور اکرم صلی اللہ علیہ وسلم کی مکتوبات نگاری  ✒حافظ عبدالرحیم  قسط۔۔۔۔۔۔2... جیسے بادشاہ حبشہ کو "عظیم الحبشہ" دوسری جگہ "ملک الحبشہ" مقوقس کو "عظیم القبط" صاحب مصر شہنشاہ روم کو "عظیم الروم" صاحب روم اور شاہ ایران کو "عظیم الفارس" وغیرہ سے مخاطب فرمائے                                 چوتھی بات یہ ہے کہ "اما بعد" یعنی بعد ازاں بھی قدیم عرب کی خطابت میں بھی نہیں تھی اپ صلی اللہ علیہ وسلم نے خطابت کے ساتھ ساتھ خطوط میں بھی تحریر کروائے ہیں دنیاۓ تاریخ یا عربی میں یہ بات نہیں ملے گی یہ مختصر الفاظ عربی زبان کی شیریں بیانی کو ظاہر کرتے ہیں اس کے موجد بھی اپ صلی اللہ علیہ وسلم ہی ہیں                             اخری بات یہ ہے کہ بادشاہ امرا اور حاکموں کے دور میں مہر کی بہت بڑی اہمیت ہوتی تھی جس تحریر یا خط کے اختتام پر مہر لگتی اس کو اہمیت دی جاتی تھی مہر کا رواج عربوں میں نہیں تھا جب حضرت سلمان فارسی رضی اللہ عنہ...