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4 Signs a Penny Stock Is Worth Millions
By Zaw Thiha Tun | August 31, 2015 — 8:17 PM EDT
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When it comes to equities, there are few riskier investments than penny stocks. These stocks, which trade under $1 per share, are usually priced that low for a good reason. For example, a penny stock could belong to a once-thriving company that is now on the brink of bankruptcy, has had to delist from the larger exchanges and is now trading on over-the-counter (OTC) boards. Or it could be that a company's only just getting underway, and so it has scant market history and hasn't yet met the criteria to be listed on a major exchange.

Whatever the case, penny stocks are volatile and risky by nature (with companies going bankrupt a routine affair) and they're especially susceptible to price manipulation. (See also: The Lowdown On Penny Stocks.) Once in a while, however, a penny stock will greatly reward the risk-hungry investor. If you had bought shares in the Monster Beverage Corporation (MNST) in 1996, when it was trading at $.04 a share, you would be a happy investor today: Monster was trading at $135 per share before the market correction in late August 2015. So if you're intrigued by the potential to find such exponential gains, it could be worth diving into the murky waters of penny stocks.


Read more: 4 Signs a Penny Stock Is Worth Millions | Investopedia http://www.investopedia.com/articles/active-trading/083115/4-signs-penny-stock-worth-millions.asp#ixzz4pT4ytRWd
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