Penny Stocks are a great way to begin investing in stocks without having to take out a second mortgage on your house.

Penny stocks are "common shares of small public companies that trade at less than $1.00" and sound appealing to newbie investors looking to break into the stock market. There are many concerns surrounding the purchase of penny stocks, including 'low liquidity' which makes it difficult to sell your shares. In other words, you won't spend much when you buy into penny stocks, but you won't make much on selling your shares either.

The real appeal in penny stocks is when you invest into hot stocks with rapid growth. Buying shares of a company at rock-bottom prices can reap a large return when the company expands quickly and maintains their growth long term. The best penny stocks to look for are with companies that offer long term potential for regular, rapid growth.
Posted 2:05 AM