What Exactly are Penny Stocks?

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The definition of a penny stock is a stock that is priced below $5. These stocks tend to be issued by emerging companies looking for funds to finance their growth plans. When investing in penny stocks, the investor must be able to differentiate between the stocks of emerging companies and stocks of former high-flying companies that have fallen from grace. To boost the likelihood of generating good returns from penny stock investing, the investor should focus on the former. A young public … [Read more...]