Many penny stocks are products of "pump and dumps", so when the stock moves higher many of sellers were the pumpers, and they got out and they no longer have any interest in the company and most do not want to be buyers.
The potential buyers for penny stocks are very limited. Most of the buyers are "Newbies" who know very little about the company and nothing about penny stocks. Professional traders do not trade in penny stocks therefore they have no interests in buying them. Also most firms prohibit their traders from buying such stocks.
Experienced traders usually can spot a "pump & dump" scheme therefore they stay away from buying such stocks
Most reputable firms discourage their customers from entering orders for penny stocks and do everything they can to discourage such activity..
Tell your friend that he may as well take the money to a casino if he's going to buy penny stocks. At least casinos have laws protecting gamblers, 95% of penny stocks are scams, shell companies that are set up to suck in investors.
Its good that you are looking into this now, because every investor has experimented with them. Good to lose money now and get it out of the way, so you can inform investors in the future not to make that same mistake.
People who ask about penny stocks are the likely ones to buy them.
People who don't ask about penny stocks never buy them.
There are 2 types of penny stock investors.
1) those who have already lost money on penny stocks
2) those who will lose money on penny stocks
Donate your penny stock money to charity or take a nice vacation.
The difficulty in selling them makes no difference. You will most likely lose the entire amount with penny stocks.
Companies whose stock has dropped to pennies are usually not earning money, owe a large debt and are on the verge of bankruptcy.
These are gambles, not investments. If you wish to gamble, you would be better off going to a casino.
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Strictly speaking, easy to sell as buy. On the other hand, you would probably have a greater chance of making money playing roulette. These stocks do not trade on the major exchanges, are very volatile and no reputable advisor would suggest you invest in them. The old adage "a fool and his money are soon parted" would apply here...
Don't buy penny stocks. they are a scam.
Do some research and buy some good stocks.
My friend thinks he has a good idea on buying some penny stocks and I'm just curious if I bought some then how difficult would they be to unload? How can I tell if it will be difficult?
