4 Myths about Penny Stock that you shouldn’t Believe

Investing is one way of getting additional earning for a company. Although many companies typically invest a huge amount of money, there are also companies

who venture on micro-cap stocks like penny stocks. If you are new in the industry of stock market, you

normally wouldn’t know that these stocks are actually traded with just less than $5. Well, for those who

have been in the business, they have a general idea of what penny stocks are. But, not all of us have the

same concept about these stocks. There are misconceptions that you as a future investor should

know right now.

Penny stocks are hard to buy and sellThere were instances that penny stocks are hard to buy

and sell. Investments trading OTCQX, Pink Sheets and OTC are very good examples. But, these aren’t just the trading markets that investors can take part. Markets like NASDAQ, New York Stock Exchange, Bulletin Board, and American Stock Exchange have

penny stocks listed on them as well. The hundreds of thousands of shares being sold and bought each day

prove that there is no difficulty in the process.

Shares can’t go much lowerInvestments are a risky decision. Once you got in the game, you have to strive hard to keep up with how the

stock exchange will perform. Although there will be times that you will definitely have an increase in the share value, there lies the possibility of hitting a low value at some time. You don’t have a full control of

what’s going to happen. There were cases that investors can totally end up losing 100% of his/her investments in penny stocks. Nevertheless, these

penny stocks have the capability to rebound.

Promising stories of penny stocksAs a way to entice investors, companies acting out as

penny stocks need to be creative in how they can attract them. These companies often voice out that their company can actually change the world, save

lives and even make millions in a short span of time. Impossible things are quite a fancy thing for most of us which tends investors to make that investment.

It is a scamAt first, you will simply be shocked and will doubt

because the investment is priced lower than any other investments in the market. You can also learn that

other companies who are leading to bankruptcy often falls in the penny stock territory to earn money to be

able to survive. Well, these are the truth that we must be ready of. But, not all companies who are trading at

a low value are those worst companies. There are companies that trade at this type of stock are often

those which are undiscovered, overlooked or looking for a place to broaden their market share.

More info here:

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