Penny Stocks
Penny stocks are a method of market traded security that attracts minimal pricing. As a result, companies with lower market capitalization rates mainly offer these securities. Therefore, these are also known as nano-cap stock, micro-cap stock, and small-cap stock.
What is a microcap stock?
The microcap stock, also known as a penny stock, applies to companies with low or micro-market capitalizations. Organizations with a market capitalization of less than $250 are known as “microcap stocks” – although many have market capitalizations of far less than those amounts. With less than $50 million market capitalizations, the smallest public companies are sometimes called “nano-cap stocks.”
Where do microcap stocks trade?
Many microcap stocks trade in the “over-the-counter” OTC market. As a result, quotes for microcap stocks may be available directly from a broker-dealer or on OTC systems such as DBOT ATS, Global OTC ATS, and OTC Link ATS, among other venues.
Consult the professionals
Penny stocks allow investing in small amounts. It can also help you to earn large amounts if you find the right one. However, they are very volatile, and because of that, there may be cases where the entire investment may be lost. In addition, a lot of scams exist. It means penny stocks are not for everyone and extensive research is needed before investing in such stocks.
We at Royal West Agency understand your financial objectives. We have experienced financial experts who can help you invest in such stocks and explore what solutions are best for you.
