Article: Finding False Gold In Penny Stock
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Finding False Gold In Penny Stock
As far as traders go, many do not see the penny stock as a solid way to do business. Many believe that dealing with penny stock is a risky business. And it really is. Some traders think that the next Microsoft and Walmart stock is buried in a penny stock, which is why they stick around trading unknown stocks over the market.
What is a penny stock? According to the Securities and Exchange Commission (SEC), any stock under $5 is a penny stock. Definitions can vary; some set the cut-off point at $3, while others consider only those stocks trading at less than $1 to be a penny stock.
What makes a penny stock risky? Certain issues must be considered before you decide to buy a penny stock:
1. Lack of Information Available to the Public - the key to an...
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