Most people don't know about penny stocks, and there are many who have no clue about how to invest. These are stocks that trade for less than $5. Also, there are occasions where this term can be swapped with microcap stocks or nano stocks.
These are priced discount and are issued by start-up firms or businesses that might be staring at bankruptcy. These are regularly traded on the Over-the-Counter Bulletin Board (OTCBB) and Pink Sheets. There are few these stocks that are listed on the NYSE, NASDAQ and AMEX. free penny stocks.They are tentative in nature and are usually high-risk stocks. As most of these stocks have fewer shareholders, they trade quite infrequently and can be tough to sell.
Those keen on penny stocks should know how to buy them. This is the first question posed by those bearing in mind investment in such stocks or by those who are novices to the stock trading business.