Building a List of Penny Stocks to Watch
If you are fed up with Wall Street, there are several penny stocks to watch. Your return is just as likely with penny stocks. However, you don't have to stand by and watch all of the greed and corruption that comes with the bigger companies. This approach to investing is focused on small businesses and up-and-comers. These types of companies can even produce better returns than Wall Street in many cases. However, the penny stock market has its problems too so you have to invest wisely.
Investing in penny stocks makes us better stewards of our money by giving it to down to earth companies instead of corrupt corporations. It also reduces the risk of investing by allowing us to distribute the investment across a higher number of companies. $1000 on the stock exchange will get you a small number of shares in just one company. The same $1000 on the penny stock market will purchase a large number of shares from multiple companies.
The greed and corruption seen in the larger companies are also turning people away from the larger exchanges. If that doesn't, then the feds impact on the stock market as a whole will. One new law or one bad accountant and the investment can be lost quickly.
Penny stocks are a great alternative. This market is made up of everyday people like you and me. Entrepreneurs who worked hard to build their businesses and are willing to continue that work to keep it going. Usually they went public because they wanted to do more with their company but needed capital to do so. For instance, a local farmer just put his farm on the penny stock market because he could get more corn to the market if he had a $250,000 harvester (tractor). Going public as a penny stock gave him the money he needed to expand the farm.
Regardless of the reason for putting their stock on the market, these companies are generally more stable slow growth investments. Some of them hit a home run that shoots their shares through the roof and produces returns. When this happens, the growth is extremely quick. The investors who sell during these short growth cycles will be rewarded handsomely. However, these success stories are very rare.
It is possible for companies to have this type of growth, but it is uncommon. More commonly this type of growth is the result of a shady broker running a pump and dump scam. Their goal is to artificially inflate the stock value of a company. Then when it can't climb any higher they sell off all of their stocks for a big profit at everyone else's expense.
The ease of growth, honest values, and chance at rapid growth has created many penny stocks to watch over the years. These stocks can definetly produce stock exchange style returns without the same types of risk or the BS that comes with Fortune 500 companies. - 23210
Investing in penny stocks makes us better stewards of our money by giving it to down to earth companies instead of corrupt corporations. It also reduces the risk of investing by allowing us to distribute the investment across a higher number of companies. $1000 on the stock exchange will get you a small number of shares in just one company. The same $1000 on the penny stock market will purchase a large number of shares from multiple companies.
The greed and corruption seen in the larger companies are also turning people away from the larger exchanges. If that doesn't, then the feds impact on the stock market as a whole will. One new law or one bad accountant and the investment can be lost quickly.
Penny stocks are a great alternative. This market is made up of everyday people like you and me. Entrepreneurs who worked hard to build their businesses and are willing to continue that work to keep it going. Usually they went public because they wanted to do more with their company but needed capital to do so. For instance, a local farmer just put his farm on the penny stock market because he could get more corn to the market if he had a $250,000 harvester (tractor). Going public as a penny stock gave him the money he needed to expand the farm.
Regardless of the reason for putting their stock on the market, these companies are generally more stable slow growth investments. Some of them hit a home run that shoots their shares through the roof and produces returns. When this happens, the growth is extremely quick. The investors who sell during these short growth cycles will be rewarded handsomely. However, these success stories are very rare.
It is possible for companies to have this type of growth, but it is uncommon. More commonly this type of growth is the result of a shady broker running a pump and dump scam. Their goal is to artificially inflate the stock value of a company. Then when it can't climb any higher they sell off all of their stocks for a big profit at everyone else's expense.
The ease of growth, honest values, and chance at rapid growth has created many penny stocks to watch over the years. These stocks can definetly produce stock exchange style returns without the same types of risk or the BS that comes with Fortune 500 companies. - 23210
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Looking for Hot Penny Stocks? Visit SmartPennyStock.Com and learn which Penny Stocks To Watch.
posted by X - Men @ 8:55 AM
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