7 Myths About Penny Stocks [Yahoo! Finance]
Apple Inc. (AAPL)
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Source: Yahoo! Finance
Getting rich quickly is possible, but rare. Check Out: 10 Valuable Stocks That Could Be the Next Apple or Amazon Read Next: Owe Money to the IRS? Most People Don't Realize They Should Do This One Thing Getting rich on penny stocks is even more uncommon, but it's happened. At some point during their histories, Blackberry (BB), Ford Motor (F), Monster Beverage (MNST) and Sirius XM (SIRI) traded at under $5 per share. All these, with the exception of Monster, are still not that expensive. Although they've split their stock a number of times since their initial public offering (IPO), even shares of Amazon and Apple could've been had for next to nothing when they started out. But for the most part, penny stock markets are small, illiquid and susceptible to scammers. Trading at a low price (typically below $5 per share although shares can trade as low as $0.0001), penny stocks often represent small, emerging companies with limited market capitalization (“microcaps”). Although the
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