Dec 07
The reason that penny stocks are so cheap by comparison to more stocks from more established companies is that they are either shares in very new companies or they are shares of a shell company, which could mean they don’t have a solid financial background or they might not have any clear income producing potential. How Does Penny Stock Investing Work? Technically, in order to profit from penny stocks you’d only need a very small increase in the price to double your money. Many investors choose to buy penny stocks because they are cheap and the chance of making big profits is very tempting.