Investing in Penny Stock
Another option that you can choose to work with is penny stocks. These stocks often have a much smaller share price than traditional stocks, so they are called penny stocks. These are listed on specific exchanges and can be risky as these are smaller companies with less money. These stocks are also very volatile, and move up and down quite a lot, due to their smaller nature.
size
how big is the company:
- Small-cap
- Mid-cap
- Large-cap
style
- Growth: the stock has a growing pattern
- Income: stocks that pay a high dividend
- Value: domestic-based or international based stocks
sector
related to which industry- health, insurance, etc.
cap calculation
Cap calculation is essential as if you invest in a large-cap, you are at high risk. That’s why your portfolio should have diversification, a mixture of different kinds of stocks.
Income stocks
As opposed to growth stocks, income stocks pay dividends in actual money. People invest in them to use them anywhere or buy other stocks.
Stocks acc. To sectors
What part of the economy does this stock belong to? What is their primary business? Companies are compared inside their sectors and sub-sectors