![]() ![]() The lack of history of the company offering the penny stocks makes it difficult for the investor to choose his purchase as such companies would possess a poor track record or no record at all.When an investor wants to sell the shares, he might not be able to sell them immediately because of the lack of buyers available in the market. Lower liquidity makes it difficult for the holders to cash out. ![]() Low price in the market leads to low capitalization.Subsequently, they have the capacity to make it big. As the name itself suggests, they start small. Massive profits can be earned from small invested capital.They have the potential to offer high growth in a short span and hence have become one of the popular choices among investors. ![]()
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