Music Theater Blog

The term penny stock commonly refers to a stock that trades at a relatively low price and market capitalization. These types of stocks are generally considered to be highly tentative and high risk because of their lack of liquidity. It generally tends to fluctuate widely in price. Most Penny Stock have only a few million dollars in net tangible assets and have a short operating history. Penny stocks are very attractive to investors because they are so inexpensive. These stocks are usually traded in the Over-the-Counter, that is, among the brokers and the customers. Penny stocks are dangerous, as because there is a very little information about them available to the public.