Unknowing what Penny Stock is and what it does, makes you wonder if it’s the right trade for you.
First of all, Penny stocks are shares that trade from a part of a penny up to $5. The term penny stock evolved together with time and market. In the past, today’s penny stocks were nothing but stocks that were traded for less than a dollar per share; nowadays, all shares trading are below 5$.
Because of the risk and lack of information about the companies that ruled these share trading, a long time ago, penny stocks provided a bad reputation. Today, investors are learning very quickly to trust small companies across America and to trade without restrains. Continue reading “What is Penny Stock?”