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Friday, July 15, 2011

Advantages and Disadvantages of Penny Stocks

The term "penny stocks" generally refers to low-priced stocks of very small companies, usually under $5. They are traded over the counter through the OTCBB and Pink Sheets exchanges.

Following are some of the major advantages and disadvantages of investing in penny stocks:

Advantages:

1) Penny stocks can double or even triple their value in a single day.

2) This is the easiest way to make

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