Lux Investing

Should I invest in penny stock?

Would it be wise to invest in penny stock? I have seen some companies with a price per share at like $0.005, would it be smart to invest in shares like that?

Public Comments

1. NO the reason they are called penny stocks is because 99.99% of them are worthless. That is the reason it sells at .005 and if you tried to buy it would suddenly jump up to .10 a share just for you.
2. Penny Stocks are a gamble. I would not recommend investing in them unless this is money you don't need. And that is silly, we all need more money.
3. A penny stock can make you alot of money in a short time if you do it right. You have to be willing to risk the loss of the money though. I own some stock that I bought just for the reason that I am pretty sure it will go up alot in the next few months. It is not quite a penny stock($2.00) but it is dirt cheap. I am willing to lose the money though to take the chance on such a big gain in a short time. Good Luck!
4. Penny stocks are from companies that are not regulated by the SEC and it can be a company that wants to buy delivery vans. If that van doesn't bring them a step to FedEx you loose. A lot of these companies also will skip town and never be heard from again. There was a lot of news about penny stock companies rip offs.
5. NO. Definitely NO! There are better options. If you don't know any successful business to invest in then the best and safest investment is putting your $$$ into a high-yield account overseas at 12% per annum compounded annually. Contact me for more details (email me through my profile). Best of luck!
6. No.
7. Absolutely not. I can tell you from experience that this is the quickest way to go broke. There are too many reputable companies out there to invest in junk. Your money would be better spent on lottery tickets because the chance for massive returns are almost the same.