Small Cap Stocks

Category: InvestingTags: diversification, investing, penny stocks, portfolio, , stock market

In today’s volatile economy, a small investment that could potentially offer a large return seems more attractive than ever. , ranging in price from $1 to $10 a share may provide just that opportunity for some savvy investors. While you may not strike it rich with , they can be a great addition to a diversified portfolio as long as you invest carefully.

One reason are so cheap is because they are likely from new companies and offer products or services that may be unfamiliar. This provides the opportunity to capture shares of the next industry giant, such as America Online or Nike, before they become a household name and prices rise far above a dollar. However, this also means that these are riskier investments, as it is less clear what will be successful.

If you’re interested in buying or selling these penny stocks, companies like,, and can help you. Each of these brokerages has different prices and limits to suit the individual needs of investors. Look into each of them to see which suites your needs the best.

Currently, there are a few that have been making gains. Companies like Elephant Talk, Inc. (ETAK), a communications company; Bering Exploration (BERX), an oil drilling development program; and Mojo Ventures (MOJO), a vitamin and supplement company, have started seeing some success once they entered the market. While these may not be household names yet, they may be good stocks to benchmark against if you’re considering trading .

One thing to consider is that may be particularly susceptible to the effects of media manipulation. For the careful investor, this can turn out to be an unexpected boon. Stocks that do better because they’re featured prominently in the news may begin to lag if their PR budget dries out after a quick initial push. For stocks whose marketing funding can hold steady over the long haul, a gain may be a reasonable prediction. In other words, the kind of promotion and marketing a stock receives may be an indication of the degree of its capitalization. Fortunately, there are specific rules and guidelines that require endorsers to disclose the amount of compensation they are receiving. These disclosures can also provide further clues to investors about the financial health of the company.

As with any other stock purchase, you need to study and prepare before making your small cap purchases. , under the right circumstances, can be the small investments that yield rewards of experience, excitement, and sometimes, even modest financial gain.

Share this article:DiggRedditdel.icio.usStumbleUponFacebookTipd Posts12 Bizarre Things That Harm Your Credit Score12 Ways Companies are Reacting to the RecessionTotal Cost of Ownership: iPhone 3GS versus Palm Pre versus Android G1Earn Money RecyclingCancel reply

Leave a Comment




Previous post: Common Investing Mistakes

Next post: How Accurate Are Gas Pumps?

FeaturedPopularTrendsCommentsDroid vs iPhone: Total Cost of OwnershipThe Ultimate Cell Phone Plans ComparisonNexus One vs iPhone: Total Cost of OwnershipThe 12 Biggest Ripoffs in America

iPhone 5/4S vs Droid Bionic


The Best Loyalty Programs


America’s Wealthy Ready to Return to Spending


The Future of Banking

3 CommentsGoogle Nexus One vs. iPhone 3GS


Motorola Droid vs. iPhone 3GS


Palm Pre vs. iPhone 3GS


Online Dating on Work Hours Per Week Around the WorldDating Tips on How Popular is the iPhone AnywayDDHCashflow on Greed, Revenge, and Deception: The 9 Best Movies about MoneyWiley Delpiano on How the Recession Changed the Game of MonopolyFeatured Cellphones

Apple iPhone 4


Droid Incredible

Google Nexus One

Motorola Droid

Palm Pre

Search Shrinkage

Shrinkage PalsBargaineeringBudgets are SexyConsumeristDealzonMainStreet.comStop Buying CrapThe Digerati LifeWise BreadAbout BillShrink

Fine print. Termination fees. Promotional rates. It's a complicated world out there and BillShrink is here to help you choose wisely. Our proprietary technology searches and sorts upwards of ten million different price points and service offerings on the market in order to deliver personalized recommendations. Use BillShrink and rest assured that you've optimized your spending. BillShrink's system includes cell phone plans, credit cards, gas, savings accounts, TV packages, and more.

Join The ShrinkageBe social! Sign up for our RSS feed, follow us on Twitter, and fan us on Facebook in order to keep abreast of the latest blog posts, contests, money-saving tips, and more.“Fun Facts”More than 60 million Americans say they are likely to cut back on wireless service to save money if the economy gets worse over the next six months. But no need to be too hasty… the right cell phone plan can help you save money without reducing talk time or fun bonus features!Quantcast

View the Original article