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Do penny stocks really cost a penny?

Yes, because they are. They are also called micro-cap stocks. Penny stocks describe shares of a company that trades for low amounts. It is usually between $0.01 to $2.00. But some institutions count a penny stock is anything that trades for less than $5.00 per share.

Are penny stocks a serious investment?

While no investment is without risks, penny stocks are particularly risky investments. It can be difficult to understand the real value of a penny stock company. At the depth of the financial crisis in 2009, there were several companies who had drifted down to the level of penny stocks.

What are the pros and cons of penny stocks?

Penny Stocks: The Pros and Cons. Penny stocks are basically stocks that trade at a very low price per share. They are typically stocks of small companies with minimum investment. They have a smaller number of shareholders but they do have their advantages and disadvantages. Some people believe that with this low investment, it is not stable or ...

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