Is Investing Into Penny Stocks Risky?
In the United States, Penny stocks are shares that trade rom a small fraction of a penny to $5 per share. They are traded over the counter or in so called pink sheets. In the United Kingdom they are known as penny shares. Because penny stocks oftentimes explode over night they can be extremely lucrative. However, they are extremely risky as well. In spite of many regulations, fraud is still oftentimes likely to happen, because of the lack of knowledge or deeper penetration into company’s data. It is difficult to judge what is the real reason for a hype or growth in the price of the stocks or what Is driving it. Nevertheless more and more people are investing in penny stocks, because they would like to make big profits. There are a large number of ways in which a penny stock can be pushed through to become a hot penny stock. A lack of liquidity generally makes the stock a very easy target for manipulation and if a big investor can push in money on it, the prices go up and it could resul
