Saving pennies (in a piggy bank) for a rainy day was quite common among the older generation, especially those who withstood the depression. Today, investing in penny stocks is becoming a popular option, particularly for those with home ownership in their plans.
A penny stock is a common stock trading at five (5) dollars or less. Penny stocks are traded outside the major markets (NYSE, AMEX, or NASDAQ).
Instead, they are traded “over the counter” (OTC) via quotation services such as the OTC Bulletin Board and the “Pink Sheets.” Perhaps most importantly, penny stocks offer an incredible upside for potential investors. Why?
- They are sold at very low prices, so the risk of taking a big loss is greatly reduced.
- Sold as common shares to the public, they are easy to buy.
- The return on investment is very high. It’s common for some penny stocks to double or triple in price in very short periods of time.
Learn more about penny stocks at Smarter Lifestyles
What did you buy with your first piggy bank savings?
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