Penny stocks offer investors chances to make quick, small investments with a potential for high returns. However, these securities are risky and should only be invests if you are comfortable with the risks.
All of these stocks are low-priced and offer a good chance for capital growth in the future.
In this article, we will outline some of the key risks associated with penny stocks and provide some tips on how to mitigate those risks. Hopes, Expectations and Reality are Different
When you purchase a penny stock (or any security), your investments come with all sorts of hopes and expectations. If the startup gets successful enough to be acquired or if its shares skyrocket in value just because investors now know that it’s product is great – those things happen.
Because stocks often go up as well, companies also get bought out right at their peak price! What happens , however, is that most investors don’t get any sort of payment (at least not in forms people usually anticipate) for the shares they hold.
It also becomes difficult to price these types of securities fairly overnight because as soon as you launch your security on exchanges such as Overstock.com, it will be priced lower than its original pricing from when you purchased it at a deep discount or even below book value!
I've been thinking about how the public markets will react to bitcoin. I think it will be one of the early winners!we should see a surge in volume as well... Something like 1,000% or 2x every month for a short period of time.
Too high traffic on exchanges is probably going to lead to higher prices (as we have seen with many cryptocurrencies which went from below $1/BTC all the way up over $30/BTC or more