Watch out
for penny stock companies that spend more on promoting their shares than developing their business Penny stocks do sometimes pay off, but there are many pitfalls to avoid.
These are great opportunities
for penny stock companies and promoters — but bad for investors looking for an unbiased opinion on a stock.
«This is a reminder that investors should give heightened scrutiny to
penny stock companies that have switched their focus to the latest business trend, such as cryptocurrency, blockchain technology, or initial coin offerings,» Michele Wein Layne, director of the Los Angeles regional office for the commission, said in a statement.
Penny stock companies are quite often companies that are either newly formed or has been sucked into a downward spiral heading towards bankruptcy.
Penny stock companies are typically small businesses that operate in a niche market.
This includes basic research on stocks via annual reports, analyzing share structure information, and very often contacting
penny stock companies ourselves to ascertain if a penny stock company is growing their business properly in the market place.
Those penny stock companies will do anything in their power to get their penny stock noticed.
penny stock companies that have switched their focus to the latest business trend, such as cryptocurrency, blockchain technology, or initial coin offerings