It may not mean nowadays so much an amount of $5 dollars but to striving companies who believe on their product the amount is significant. Yeah, there are some speculations, but trading stocks and shares are all speculations. There is no certain things in life (except maybe the end of it and taxes) and there is no sure way of winning. It is good that risk is minimized but at the end of the day taking some risks is the spice of life. There is always that feeling of being excited especially when we are backing the underdogs. The website http://economix.blogs.nytimes.com/2008/08/16/ has-any-penny-stock-become-a-big-company, you will be enlightened that microcap stocks companies are many and some of them are now playing big time. But what is the difference when you trade on the penny companies? The following are some of them:
1. Since these companies, you lack some public information about them. It is simple to look at wall mart, Exxon and other multinationals. There are volumes and volumes of information about them. The bigger the company, the more visible it is. We always see the big guys as expected.
2. Companies that are considered penny stocks companies does not required minimum standards like net assets and number of shareholders as given by major stock market like Nasdaq Stock Market.
3. They are relatively risky. This is because the product and serv