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What are Penny Stocks?

Penny stocks are higher risk inexpensive stocks that trade for less than $5. Even though these stocks are a higher risk, they can have tremendous reward potential. In the past some penny stocks have gone from 25 cents to $20.00. Investors who find out about penny stocks early on stand to make large capital gains.

Most investors find the inexpensive nature of these stocks appealing. They don’t require a big cash investment to get started. A small investment could turn into a fortune, creating instant wealth for the investor.

Investing in penny stock has several benefits:

  • Gets investors in on the ground floor in new companies
  • Allows new investors to learn about the market without investing a lot of money

In the current market, penny stocks are gaining popularity. Investors of all ages and skill levels are purchasing penny stocks. Want to find tomorrow’s billion dollar company today? Click here to review our featured companies.

Scavenger Hunt Question 3: Find our investment tutorial page. What are the 2 investment strategies we mention? (Enter this answer in the answer 3 field on the entry form).