So why would anyone want to buy a Trip-Zero stock?
It's all about the up-tick...
After hearing this story of dilution and never ending spiral to .0001 with no bid, you may be totally writing off the trip-zero stock. If you are looking for a safe investment, then that is your best bet. Stay far, far away. However, the lure and potential of these stocks lies back with the basic stock market rule mentioned above. If the lowest share fraction tradable by a retail investor is .0001, then that is also the smallest price increase that a .0001 stock can have. So if you buy the stock at .0001, and the price goes up just one tick to .0002, you've just doubled your money! This is the potential, the leverage, behind these trip-zero penny stocks. Of course, as the price gets closer to .0009 that leverage decreases exponentially. However, it still offers incredible percentages in gains. Also, if a trip-zero stock starts running from .0008, for example, it may go on to hit .0019 or more, just as easily as a .0002 stock would go to .0004. Now, Imagineif you were able to catch a real runner, grabbed shares at .0001 and were able to sell them at .0010. That's a 900% profit, or a "10-Bagger".Every so often it happens, and that is the golden lure behind these stocks.
Now, the fact that you cannot trade in between the ticks is the reason these Trip-Zeros have this potential. At the same time it makes it difficult to sell them because you can't work in between the spread. That is, you can't offer the shares you bought at .0001 for 'just under .0002' and beat the other sellers to the punch. You have to get in line at .0002, or .0003 and so-on, and wait for your sell to execute. With a stock that is running up to .01, for example, you could put in your sell at .0099 and beat those sellers lined up on the .01 ask.
