Chapter 1: What Is A Penny Stock? Terminology
One thing that makes penny stocks so, well, frustrating to learn about is that they are often called by various different names. You may have heard them referred to as micro stock, nano stock, micro cap stock, small cap stocks and many other names. If that sounds confusing, just remember that they are generally all terms that rely simply on the fact that the stock is priced below a dollar to five dollar range. In other words, penny stocks are quite affordable, low costing stocks.
Who knows if they are right for you?
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Does it have solid management abilities?
Yet, even with this risk again comes the fact that with more risk there is more opportunity to gain as well. Terminology One thing that makes penny stocks so, well, frustrating to learn about is that they are often called by various different names. The one that is working for his own bottom line may not be as honest or provide as benefiting information to you. It is important to play a role in this process especially until you get to know your broker fully.
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