Penny stock investment refers to the activity of trading in stocks that are less than $5. Like other stocks the steps to invest are pretty much the same. These stocks however, usually have lower dividends mostly because of their price. They can be worth your time however if you are willing to wait, and challenge yourself. Most stock brokers do have listings for penny stocks, all you have to do is find one that you find worth investing in and you're good to go. Many people invest in them, and do profit greatly.

Penny stock investment is an attractive form of investment, firstly because of the low price second because of the the high flactuation rate. A $1 investment for instance could as easily be $3 by the end of the week. The only disadvantage with this is that they are most times hard to sell off. You may not be able to sell off the $3 dollar stock for instance because there are simply no buyers, and by the time buyers show up, it has probably fluctuated to lower than the original price. In the end, the invester makes losses. Regardless though, penny stocks can also be very rewarding for the very same reason of their wild fluctuations.

Penny stock Investment are stocks of those companies that trade with a share price that is below $5; however, often penny stocks can be less than $1, as the name suggests. The extremely low share prices allow an investor to hold thousands of shares for a relatively small amount of invested capital. With that scale, the gain of just a few cents per share can translate into sizable percentage returns; however, it is important to note the reverse is also true, of course.
These stocks are traded on regular exchanges such as the Nasdaq. However, major stock exchanges, such as the NYSE and Nasdaq, have special listing requirements. For example, according to Nasdaq Rule 5550(a), failure to have a minimum bid price of at least $1 per share for primary equities will result in being delisted.