Friday, May 24, 2013

Still Buying Penny Stocks?


I see from new promotions that penny stocks, small company issues being sold well under $5 a share, are still being offered to the unwary.

I repeat this often but some investors, who aren’t familiar with investing odds, never learn.

Small companies are hard to analyze. Those promoting them to the public are the least likely to be accurate when it comes to true corporate prospects.

Also, penny stocks are not traded in satisfactory auction markets. The latter are not liquid and can be easily manipulated. In such instances, the small investor is in a very disadvantaged position. (See the Earl J. Weinreb NewsHole® comments and @BusinesNewshole at Twitter.)

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