Hedge, I agree completely. An investor who monitors their own portfolio may take this option. However, your large individual investors can not invest in the penny arena due to brokerage restrictions. I am an analyst intern at Merrill Lynch and can tell you a portfolio has to have atleast $500,000 to delve into the penny stocks. I am not positive if this # fluctuates with other brokerage houses but I am sure the amounts are similar.
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