Major Stocks Become Penny Stocks
by Will
With the stock market exercising record volatility, many major companies are falling under the broadest definition of penny stocks: the five dollar range. Does this mean opportunity or catastrophe for those dealing in the delicate art of buying penny stocks?
But be wary where you tread as penny stocks scams abound. Rich Duprey describes opportunity with caveats over at the Motley Fool:
The occasional shower of pennies from heaven might do our bank accounts some good, but we Fools can’t say the same for penny stocks. The world of penny stocks is often full of manipulation and deceit, making it harder for investors to separate its few good offerings from the multitude best ignored.
Still, many investors dabble at the low end of the stock-price spectrum. At Motley Fool CAPS, we award the “Pennies” title to investors who rate stocks trading in the single digits more than half the time. Believe it or not, you’ll find some of the best CAPS All-Stars among those members.
Read more: Make Cents in Penny Stocks