Do Penny Stocks Really Cost a Penny?
Officially, there is no definition for these stocks.
Literally speaking it could be stocks that costs a penny but you're not likely find those these days.
It really depends on who you ask.
There are three different criteria that various individuals and organizations use to define penny stocks.
These stocks may be defined by: •Price Per Share: The SEC considers all stocks trading below $5.
00 per share to be penny stock.
However, individuals and organizations have their own cut-off.
•Market where the Stock Trades: Any shares that trade on a certain market (ie- the OTC-BB, or the OTC, or the 'Pink Sheets,' or the CDNX) may be considered to be, penny stocks.
•Market Capitalization: Organizations or individuals will treat any company beneath a certain market cap (for example, less than $10 million) as a penny stock.
As you can see its really arbitrary how you define these type of stocks.
Defining these stocks by either Price Per Share or Market Capitalization may mean that a penny stock today may not be one tomorrow, depending on how that share performed and closed & conversely a stock that costs below $5 today may close the day at $5.
50, therefore falling outside the definition.
No matter how you define Penny Stocks, most traders agree that they are high risks & consequently high rewards investment.
They are both volatile and unpredictable.
Consider how Alexander first tamed Bucephalus, seemingly volatile and unpredictable.
Alexander observed while all of Philip's best horse trainers tried.
He saw that Bucephalus reacted wildly to its own shadow.
Using this knowledge he tamed Bucephalus by turning it towards the sun & eliminating the shadow from view.
So with preparation and knowledge might the seemingly volatile and unpredictable stocks be tamed? Could anyone accurately predict how these volatile unpredictable shares will buck? Visit http://bucephalusanalysts.
com/ for more.
Literally speaking it could be stocks that costs a penny but you're not likely find those these days.
It really depends on who you ask.
There are three different criteria that various individuals and organizations use to define penny stocks.
These stocks may be defined by: •Price Per Share: The SEC considers all stocks trading below $5.
00 per share to be penny stock.
However, individuals and organizations have their own cut-off.
•Market where the Stock Trades: Any shares that trade on a certain market (ie- the OTC-BB, or the OTC, or the 'Pink Sheets,' or the CDNX) may be considered to be, penny stocks.
•Market Capitalization: Organizations or individuals will treat any company beneath a certain market cap (for example, less than $10 million) as a penny stock.
As you can see its really arbitrary how you define these type of stocks.
Defining these stocks by either Price Per Share or Market Capitalization may mean that a penny stock today may not be one tomorrow, depending on how that share performed and closed & conversely a stock that costs below $5 today may close the day at $5.
50, therefore falling outside the definition.
No matter how you define Penny Stocks, most traders agree that they are high risks & consequently high rewards investment.
They are both volatile and unpredictable.
Consider how Alexander first tamed Bucephalus, seemingly volatile and unpredictable.
Alexander observed while all of Philip's best horse trainers tried.
He saw that Bucephalus reacted wildly to its own shadow.
Using this knowledge he tamed Bucephalus by turning it towards the sun & eliminating the shadow from view.
So with preparation and knowledge might the seemingly volatile and unpredictable stocks be tamed? Could anyone accurately predict how these volatile unpredictable shares will buck? Visit http://bucephalusanalysts.
com/ for more.
Source...