So-called penny stocks are not available for pennies anymore, or sell for under a dollar a share. They can also be those priced for a few dollars a share. By definition, they are really any shares of nondescript companies whose values are often doubtful at best.
Their companies’ managements’ or promoters issue large numbers of shares, whose prices are low, but with actual values that are often minimal, if any.
Yet, folks who ought to know better buy them. The patsies think something priced low just has to be a bargain. That is the best way to get fleeced and securities tricksters know it.
Does it always make any difference when buying higher priced stocks? Not if you still cannot determine value. And most analysts on Wall Street cannot truly do this from outside the companies, looking in. Analysts really are often guessing at what goes on in the companies whose stocks they evaluate.
It’s the reason why I always suggest investment in low-cost, indexed mutual funds or exchange traded funds (ETFs). ( See the Earl J Weinreb NewsHole® comments.)
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