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Penny Stocks

All articles tagged with #penny stocks

finance1 year ago

"From Wolves to Winners: The IPO Journey of 2023"

Small companies like Jin Medical are increasingly choosing initial public offerings over reverse mergers, egged on by a growing group of penny-stock underwriters, brokers, and day traders. The number of penny-stock IPOs has skyrocketed since 2021, with 47 such IPOs in 2023 and a total of 120 from 2021 through 2023. Webull, a diy investor-friendly brokerage, is actively promoting penny stock IPOs, many of which are operating in Asia. However, the risks of manipulation and extreme volatility in thinly-traded microcaps are high, and retail investors' history of investing in penny stock IPOs has not been good.

via Forbes|
#china#finance#ipos
finance2 years ago

The Perils of Penny Stocks: A Risky Investment to Avoid

Penny stocks, which trade at $5 and below, can be highly risky and dangerous investments. These low-priced stocks are often traded on over-the-counter equities markets, which have less regulation and transparency compared to mainstream stock exchanges. Penny stocks are susceptible to manipulation and fraud, with fraudsters taking advantage of unsuspecting investors. The lack of liquidity and higher volatility make it difficult for investors to sell their shares. Notorious penny-stock scams, such as the one orchestrated by Jordan Belfort and depicted in "The Wolf of Wall Street," have defrauded investors out of millions of dollars. Investors should exercise caution and conduct thorough research before investing in penny stocks.

via CNBC|
#finance#fraud#investments
finance2 years ago

Retail investors drive WeWork's meme-stock surge

Retail investors are turning their attention to penny stocks such as WeWork, Amyris, and Proterra, leading to a surge in trading volume and share prices. WeWork, once valued at $47 billion, warned of potential bankruptcy, while Amyris filed for bankruptcy and Proterra filed for Chapter 11 protection. Despite significant losses this week, these stocks saw gains of 40% to 120% as retail traders speculated on potential mergers, turnarounds, and short squeezes. The allure of massive profits in a short period of time is attracting investors, although the risks remain high.

via Reuters|
#bankruptcy#finance#mergers-and-acquisitions