Do Penny Stock Make Money. I used to dabble in penny stocks, but then I learned some facts which helped me understand why so many lose money to penny stocks. * Most popular penny stocks end up diluting shareholders to zero. Penny stocks get their name because of their low share price.
While that seems like a small move.
Many of these companies are speculative because they are thinly traded, usually over the counter instead of on major exchanges But Grittani has been able to profit because it's such an inefficient market.
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Since penny stocks are traded in an underdeveloped market, volatility tends to be much higher. A stock's volatility means prices fluctuate from high How much money you need to start trading penny stocks really depends on your current financial situation. That makes them incredibly risky and uncertain.