Categorized | Stock Tips

The Smallest Value of All Lies in Sub Penny Stocks


Share Button

 SUB PENNY STOCKS CAN BE WORTH THEIR WEIGHT, BUT THAT IS NOT MUCH

Sub Penny StocksMarket analysts use the term penny stocks to refer to small fry investments that are below the value of five dollar, but sub penny stocks are even tinier ventures. These may be worth literally fractions of a cent, making it possible for an investor to accrue thousands or even millions of such stocks without much more than a moderate sum of cash. Financial advisers often kick these around, as their value is often low for a reason. Market experts see little to no reason for them to increase in value much, even to the point of a few cents (let alone over a dollar) in the span of months or even years. These may be public companies that are based in small cities, having limited customer bases, provide few services, or only have seasonal sales. In any case, they are an interesting look at the market on a very small scale.

CAN SUB PENNY STOCKS EVER BE WORTH A FULL CENT?

The usual value of sub penny stocks is to be included in a larger amount of shares when traded as a balancing act. These shares may not see their value increase much, but when traded in bulk they are successful to the point where a small increase (or decrease) can be an immense gain (or loss).

Some rare events might cause the value of sub penny stocks to surge: the increased cost of oil in May and June caused the price of Abraxas Petroleum to increase fivefold but it has since returned to the average. While these stocks see the greatest increase on a percentage basis due to their low price, few investors are willing to put the time and energy into researching potential booms as the overall odds of a positive return on sub penny stocks is very low, despite how inexpensive it is to acquire shares.

Get more info on sub penny stocks by getting onto our FREE eMail list!

This post was written by:

- who has written 2169 posts on StockRockandRoll.


Contact the author

Comments are closed.


© 2021 MJ Capital, LLC | All rights reserved