Undertanding Penny Stocks
January 23rd, 2008
If you are looking forward to undertanding penny stocks, here is something of help for you. First of all you should understand that there is no official definition of penny stocks. They are defined through three criteria generally. The first criterion to define penny stocks is the price per share. The stocks that are traded for $5.00 or less per share are termed as penny stocks. The second criterion is the market on which the stock trades. The third criterion is the market capitalization.
Different traders define penny stocks differently. However, one thing is common in all of these definitions. They are investments known to involve high risks and high rewards.
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