Small cap Stocks under 10 dollars hold the promise of huge profits in an up market. Unfortunately, most of these low cost shares never really take off. If you know where to look though, small caps, those shares trading at a market cap of around $300 million to $2 billion, are a great opportunity for individuals to compete with institutional investors.
The search for Penny Shares To Buy begins in the over-the-counter (OTC) market. You cannot find these stocks on the listings of the major stock exchanges. In order to appear on one of these more well-known exchanges, you must file paperwork with the Securities Exchange Commission (SEC).
Buying stocks under 5 dollars has its advantages and disadvantages. Many investors who do not have a lot of money have found that investing in these types of stocks can be a very good idea. On the other hand, investing in cheap stocks must be done wisely and cautiously, otherwise a person can lose a lot of money.