Which is a better investment: penny stocks or value stocks?
Stocks are an attractive investment option, but which type should you buy? SEBI registered stock tips provider can help you. In this article, you'll find out the difference between penny stocks and value stocks and how each one can help you grow your money. What are penny stocks? Penny stocks are low-priced securities that trade for less than $5 a share. Although penny stocks generally are considered to be riskier investments, they also may provide a greater opportunity for price appreciation than do some blue-chip stocks. Why might an investor consider buying penny stocks? A key reason is that these stocks typically are much less expensive than are shares of even the largest companies. For example, as of mid-2018, the share price of Microsoft Corporation (MSFT) was about $106, while the average price of a penny stock was around $3.50. Thus, an investor could buy more than 30 shares of a penny stock for the same amount of money that it would cost to purchase just one ...