Investing Penny Stocks

The Share Market is a means by which companies are able to obtain funds by selling shares in their businesses by marketing them to public.

New York, NY (prHWY.com) June 28, 2012 - The Share Market is a means by which companies are able to obtain funds by selling shares in their businesses by marketing them to public. Most countries around the world provide a central stock exchange which provides companies with a greatly increased cash flow for the growth of their organizations. However, the corporal "Stock Exchange Floor" is increasingly moving toward an international mesh of internet trading. This is making investing penny stocks a more attractive endeavor.

There are vests amount of money to be made, and lost, on the stock market. These losses were seen worldwide during the global financial crisis from 2007-2012. The trick is to predict what stocks will rise and what stocks are going to drop. Company stocks are priced per unit simply on supply and demand. The more fashionable commodities such as gold will be traded at high prices while shares in a company recycling peanut butter jars will most likely be low. However if the demand for those jars was to increase for some reason, the shares would rise sharply. If one had low price shares, a great deal of money would be made by selling them.

Investors typically invest long term waiting for shares to increase in value. On the other hand investing in penny shares is a short term, usually daily undertaking and changes occur at a fast rate.

What Are Penny Shares?

A Penny Stock share is that of very small companies who are distinctly lacking in liquidity. They trade at very low prices, commonly under $5 a share and often are under $1. They normally trade through the Over The Counter Bulletin Board (OTCBB) or pink sheets online which is outside the normal stock market dealings.

The stock exchange trader often purchases shares at $100, and even much more. A hundred shares will cost $10,000. A $10 drop in shares will result in $1,000 loss. While waiting for them to inflate they may drop even further.

One hundred penny stock shares at $1 will cost $100 with the same 10% drop in value resulting in only a $10 loss. A 10% increase only gives a $10 profit however, with the volatility of daily penny share market they will often jump much more than 10%. and even 100% in a day. It can take years for the major market shares to increase to that level.

There are some great sites like Stocklegends who can provide individuals Investing Penny Stocks with tips on who is likely to rise and why. With their help they can have a great deal of fun backing their own judgment and maybe making some nice profits.

Contact Info:
info@stocklegends.com
http://www.stocklegends.com/

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Categories: Finance

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