Stock Market Information

A penny stock is a stock that trades for less than $5 per share.  There are numerous companies whose stocks are under $5 and therefore are termed penny stocks.  We will be discussing penny stocks in greater detail in this section.

Beginning stock traders are often times attracted to penny stocks because of their price.  Since penny stocks trade for less than $5 per share they are often affordable to many beginners.  In addition, many beginners are lured to penny stocks due to their potential for rapid growth.  Meaning if a stock is trading for less than $5 and it looks to have potential a beginner may feel they can easily double their money or even more.  However, it should be noted that penny stocks are also very risky.  This is due to numerous reasons we will be discussing in this section.