More frequently the share price is $0.10 – $3.00. “Micro-cap Stocks” (microcap or penny stocks) mean those stocks who typically have a market value between $50 million or $350 million, often trade less than $5 per share, and trade on minor exchanges like the OTC exchange (over-the-counter) rather than national exchanges like the NASDAQ. Most (if not all) institutional (professional) investors neglect the micro-cap stock market arena for many reasons however, some dip their toes in with high risk funds. Here is how you can invest in penny stocks while understanding the risks and increasing your chances of big gains without losing your shorts, shirt, socks, and shoes.
Just make sure you are on the winning side whichever it is. Money is to be made by going long and shorting these securities. This doesn’t mean you can’t be on the winning side. Many micro-cap stocks are subject to all kinds of fraud and manipulation. Many investors choose not to educate themselves and this is where you will gain an advantage. Majority of investors avoid micro-cap stocks but it is all about understanding the risks and being able to mitigate them. Investing in micro-cap stocks (also known as microcap or penny stocks) can be difficult if you are in-experienced or for novices who have never ventured into this type of investing before.
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