What Are Penny Stocks?

I admit it. I get excited when people start talking about “hedge funds” and especially when they mention “disaster recovery” or “business continuity.” But, I admit that I am a geek in those areas.

For years I have been hearing about “penny stocks” and have wondered, at least mildly, what they were.

So, I started where I start many times, with Wikipedia.

Wikipedia did a pretty good job, but I found that a better description could be found here: What is a Penny Stock?

So, whereas I am more accustomed to the “big stocks” that are traded on Wall Street, the penny stocks are a way to invest, but for those smaller stock prices. The tricky part is ensuring that you do not find a scam. Wikipedia does do a pretty good job highlighting the risks of scams, etc. in novice terms, so that the beginner can get a basic concept for the concern. That said, it is still up to the buyer and the old adage, “Buyer beware!”

Many web sites offer their list of penny stocks to watch and this is a good way to get an idea of what type of stocks are comprised in that penny stock category.

So, this is a teaser to get you going on penny stocks, if that is where you are headed, but by all means, don’t take my word for it, but do your own diligent research and take what I started in this article to the next step.