Penny stocks are extremely cheap stocks; so cheap that they usually do not follow the normal market capitalization rules of being listed on major exchanges, so are always traded OTCBB or through Pink Sheets. Penny stocks, on the other hand, often have prices shift through pure speculation; a flood of penny stock investors will sweep in to one stock over a short period, driving the price up, then start fleeing almost as fast, crashing the price back down. Companies who are represented by penny stocks can sometimes manipulate the prices themselves; it is not uncommon to see 10,000 for 1 reverse stock spits among penny stocks where the company wants investors to see a sudden jump in price to attract attention.
If you are considering investing in penny stocks, just remember that more fortunes have been made short selling penny stocks than buying them.


The name also comes from the fact that most penny stocks have either started or will end at $0.01 (a penny).
All information is provided on an "as-is" basis for informational purposes only, and is not intended for actual trading purposes or market advice. Neither Stock-Trak nor any of its independent data providers are liable for incomplete information, delays, or any actions taken in reliance on information contained herein. When they did air the program they had edited so that the two other traders and myself looked like idiots.





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