Quote:
Originally Posted by pomperipossa
Hi GFY, I have a buddy that really want's me to invest in penny stocks. What's your experience with penny stocks? I hear a bell that rings scam long way...Please share your positive and negative experiences with penny stocks.
Regards,
Pomperipossa
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With penny stocks the price fluctuations are big, as the nominal price is quite low; you know, if you buy 2 cent stock and it changes as 1 cent stock, it just lost 50 % from its value. Same of course applies to another direction.
I suppose you mean stock exchanged stocks? If so, there is not that much actual scam risk, as there are requirements to get it listed in the first place. But the penny stocks are penny stocks for a reason, and I would say that they are usually very high risk investments due to the reasons why those are penny stocks and due to the high price changes in %.
As a part of your high risk portfolio, those penny stocks are just fine. Just don't put your all moneys to those.