P
icking the right penny stock of course involves an
element of luck.
The company in which you invest
can see its CEO, the prime mover and founder of the
enterprise itself, drop dead of a heart attack or (possibly
worse) get involved in messy, expensive...
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P
icking the right penny stock of course involves an
element of luck.
The company in which you invest
can see its CEO, the prime mover and founder of the
enterprise itself, drop dead of a heart attack or (possibly
worse) get involved in messy, expensive divorce proceedings.
The market can turn against you and your penny stock.
The
industry or sector in which the company does business can suffer
a dramatic, unpredictable reversal.
Of course, larger, more established companies have a better
chance of recouping from unforeseen developments.
Unlike their
cheaper cousins, they usually have much greater capital reserves
and a larger pool of investors on which to draw.
This resilience,
of course, means that blue chips, while a safer investment, can
offer much less opportunities for tremendous gain.
Penny stocks are at the opposite end of this risk/reward
spectrum.
Not only does the market assign them a lower value,
it does so for a very good reason: Penny stocks usually come on
the sc
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