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Why are penny stocks risky?

Updated: 8/17/2019
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13y ago

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Think about it this way. Sure a stock can go from 7 cents to 14 cents which would mean you can double your money. However, the stock can just as easily go to 0 making you lose all of your money. Stocks that trade for pennies did not get there because the company was doing well.

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13y ago
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Q: Why are penny stocks risky?
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Penny stocks are a very, very, very risky investment and it is unwise to try and get rich off of penny stock valuations. Winners in penny stocks usually have to be luckier than lotto winners.


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There is no difference between penny stocks and cent stocks.


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How can Canadian penny stocks be bought?

Canadian penny stocks can be bought through a financial brokerage office. Also an online platform service can be used. Detailed information about Canadian penny stocks can be found on the website All Penny Stocks.


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Penny stocks, usually called common stocks, can be invested in for as little as $5 a share either at a brokerage firm or online. Consultation with a broker who specializes in penny stocks is recommended.


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Where do I go for information on penny stocks?

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