Penny Stock Breakdown

Today's Guest Blog Post comes from Michael Stone of Penny Stock Bull Reports. "Exactly what is a Penny Stock?" originally appeared as an Introduction to Michael Stone's latest eBook. In this post, Stone explains the basic concept of what a penny stock is and what the risk vs. reward ratio's entail. If you enjoy this post, please click here to learn more about Penny Stock Bull Reports and receive a complimentary report which will share 3 potential penny stocks poised to breakout.

Many people have heard about Penny stocks and their popularity is unarguable due to the fact that on any given day, millions of shares of these stocks are bought and sold in the United States and the rest of the world.

As long as you are reliably informed about the correct strategies for thriving in penny stock market then you can make more profitable trades more consistently.

If you are wondering what penny stocks are, these are defined by the Securities and Exchange Commission as low priced (usually under $5), high risk securities of startups and other small firms. Some market players regard penny stocks as stocks priced $5 or smaller while others believe the limit should be at $10.  Generally, penny stock companies have a market-cap of less than One Billion Dollars.
The major issue about penny stocks is not really about the price range but the fact that it is the most accessible investment for many people with low investment budgets.

Even though penny stocks can be bought and sold on securities exchange and foreign securities exchanges.  They are usually available over–the-counter (OTC) or on the Pink Sheets unlike other types of stocks that are typically only available on large markets such as the New York Stock Exchange and NASDAQ.

The types of penny stocks on the market are numerous but experts believe that Micro Cap Stocks have the highest probability of making high returns on investment within the shortest possible time and therefore regarded as the most profitable.

On just a little bit of news Penny Stocks can easily increase in value by 25 percent within a short period of time. On the other hand penny stocks can experience a 25 percent tumble in the same amount of time. This therefore means that penny stocks are investments which are very high yielding but very risky as you can end up with big losses.

If you are wondering why you should even consider purchasing penny stocks as a form of investment, due to the high rate of risk involved, then you need to  keep in mind the Risk Vs. Reward Ratio is much higher with Penny Stocks.  In most cases, High Risk equals High Reward for in-the-know investors.

In any event, when you are investing in Penny Stocks… Do your research and be ready for fast moves.

Kind Regards,
Michael Stone

Editor in Chief
Penny Stock Bull Reports


If you like this article and would like to read more from Michael Stone and the researchers at Penny Stock Bull Report, please feel free to visit this page for a complimentary report which will share 3 potential penny stocks poised to breakout.


***The views and opinions expressed in this post are that of the featured Guest Blogger. This post does not necessarily reflect the’s own views. All trading involves a level of risk. Individuals should fully understand risks before entering the market. None of the information contained in this post should misconstrued as advice or any sort of solicitation to buy, sell or otherwise invest in any fund, company or security. ***

5 thoughts on “Penny Stock Breakdown

  1. Hi my name is Charlie and i was searching around for some new penny stocks and i found Fireman Contractors stock symbol FRCN, MMAX and maybe SSOL? Sentiments?

  2. Friends,

    if we look at past of some leading stocks or market leaders of today, ones upon a time, thay were too, treated as a panney stocks, so long term prospectus is more important to evaluate panney stocks, rather then to discribed it from its prise tags

    And one more thing,at the time of southward turn around, probabilities of loss is allmost equal in both, panney and non-panney stocks.

    Rasesh Shukla

Comments are closed.