| You may be wondering what constitutes a penny | | | | market, luck plays a major role also. You do your |
| stock. Some people are confused by the definition. | | | | research, buy and sell as your information and your |
| Technically, penny stocks are any shares that trade | | | | intuition guides, and then rely on all of this coming |
| outside of the normally regulated stock exchanges. | | | | together at the right moment. |
| So you won't find these on the NYSE, the NASDAQ, | | | | One right moment for buying is when a company is |
| or AMEX. | | | | just starting out. If you like what the company is |
| This may make you feel shaky, because there's no | | | | doing in terms of its products, services, and |
| set price at which these are trading. There can be | | | | management, you could invest when the price is very |
| many prices for a given stock at a point in time. Of | | | | low. If you hold it for a while, you'll find that your |
| course, that very lack of regulation can make them a | | | | investment has paid off nicely over time. |
| wonderful buy if you get in at the right moment in | | | | When you're deciding what to purchase, be aware |
| time. That's where the opportunity for a windfall | | | | that there are scams. Sometimes people in the know |
| comes in. | | | | artificially raise the prices so that they can sell them |
| They are sometimes seen as volatile, but remember | | | | at a high price. This negates the natural ability of the |
| that volatility goes both ways. You can make it work | | | | market to behave in a predictable way. |
| for you. So if you have the money to purchase | | | | They call these schemes pump and dump, and you'll |
| these penny stocks and the money and time | | | | have to do your research into a stock's patterns to |
| available to hold them until the time is right, you | | | | make sure that the one you're considering isn't part |
| might want to consider this kind of trading. | | | | of such a thing. |
| Of course, as in anything having to do with the stock | | | | |