The Economic Recovery
In an effort to assist fiscal recovery, various companies have been marketing what they call ‘penny stocks‘ these are very cheap shares, not yet defunct but having fallen to a very low trading price. The value of these shares does still move up and down, only the price is so low that you need an incredible number of shares in order to be able to see any return from buying in the very small troughs and selling on the equally tiny peaks. The theory is quite sound and it definitely works. The shares do have a value, however marginal, and by increasing volumes it becomes possible to trade in penny stocks for real money. There is also the possibility that you could be fortunate to acquire stock that suddenly soars in value for some reason but that would be rather like winning the Jackpot at the races. That’s not how penny stocks work. Think many small gains rather than a single large one.