If you haven't heard of penny stocks, maybe you should stop and read this. Penny stocks, as odd as it may seem, are responsible for the vast majority of stock trading in the US each day, accounting for over three-fifths of the NASDAQ stocks traded and over three-quarters of the stocks traded on the NYSE. But what are penny stocks, really?
Penny stocks, as their name implies, are stocks with a low share price, often under a dollar. But this does not mean much in terms of their trading, because they are most often traded in lots of at least a thousand, and more often tens of thousands, of shares.
What are penny stocks when seen by entrepreneurs? Suppose you have a company selling widgets, and everyone who buys your widgets raves about them. You'd like to sell your widgets to the entire world, which really needs good widgets, but you don't have the money to manufacture them in sufficient numbers. So you decide to raise money by taking your company public. You need a million dollars, and you can sell your stock at any initial price you like.
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Same company, same amount of money, but cheaper stock. In your case, the question "What are penny stocks?" can be answered with "The way to get my company