What are penny stocks good for?

[italkcash]

Well penny stocks are small cap companies, typically just listed on the stock market and have a very low value due to the very low trade on their stocks as well as it reflects the respective company value.

Penny stocks, or also called small caps can be a good investment as they tend to gain much more value % wise than bigger stocks. A penny stock can go up with 50%, while it of course can go down the similar. Penny stocks are a good investment, but also very volatile. Usually they are used for pump & dump by groups of people.

[lktennis55]

Yep, you pretty much hit the nail on the head. I haven't had much luck with penny stocks but I know of many people who absolutely love them.

[BrendaMarie]

Thanks for putting into English what penny stocks are. I'd always wondered about them.

[Cossette]

I'm just wondering what are the best penny stocks companies that are realible.

[BrendaMarie]

I don't honestly think that a lot of people are putting much worth in such stocks anymore. They don't seem to pay off very well and so I think that a lot of people are no longer investing in them.

[matt90]

As with all investments, there is some level of risk, but with penny stocks there is a very large level of risk. Before going into penny stocks you must be sure to do a lot of research. Penny stocks are a very high risk because yes they can jump 1000% in a matter of weeks, but they can also be worth nothing in the same amount of time.

[BrendaMarie]

If anything truly seems like gambling your money away with investments this would have to be it.