Penny Stocks

Should you watch these Canadian stocks under 50 cents?

  • January 13, 2023 03:21 AM EST | Tamnna
 Should you watch these Canadian stocks under 50 cents?

There are plenty of Canadian stocks under 50 cents, however, potential investors must note that these stocks are generally highly volatile

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How can Canadian investors buy penny stocks?

How can Canadian investors buy penny stocks?

If you are an investor who wants to or has little money to invest in stock markets, penny stocks can be a helpful option for you. Penny stocks are not only cheap (less than C$ 5 apiece), but also help you enter the stock market universe wi ...

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5 Canadian penny stocks to buy under 50 cents before 2022

5 Canadian penny stocks to buy under 50 cents before 2022

Investors often look for pocket-friendly stocks that can fetch healthy returns in a short span of time. As penny stocks are usually low priced, they can draw investors’ attention for quick gains depending on the prevailing market cond ...

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Top 4 penny dividend stocks of 2021

Top 4 penny dividend stocks of 2021

Companies that have a market capitalization of somewhere between C$ 60 and C$ 300 million are known as penny-cap companies. Investors with a small amount of surplus money for investments can invest in such stocks as these are priced under C ...

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5 Canadian penny stocks under $1 to buy before 2022

5 Canadian penny stocks under $1 to buy before 2022

Investing in penny stocks can help investors earn short-term gains. Most people can afford to invest in penny stocks as they are relatively cheaper.  Some penny stocks also deliver significant gains over a long period of time, which m ...

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Which Canadian penny stocks would be a smart buy?

Which Canadian penny stocks would be a smart buy?

Investors aiming for short-term gains often look for penny stocks as these are low-priced. Generally, penny stocks are expected to deliver normal returns as these companies have limited capital to capitalize on the market opportunities. Ho ...

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5 top penny players of 2021 in Canada

5 top penny players of 2021 in Canada

Investors who have a small sum of money set aside for investing purposes often invest in penny stocks. While relatively small in operations and capital, some penny-cap companies are often seen to report significant growth and returns over a ...

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3 Canadian penny stocks to buy before Christmas holidays

3 Canadian penny stocks to buy before Christmas holidays

Highlights Penny stocks are the shares of companies with a market capitalization ranging from C$ 50 million to C$ 300 million. Generally, these stocks are priced under C$ 5. Due to low market capitalization and less cash balance, these ...

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2 Canadian penny stocks that grew 200-400% in a year!

2 Canadian penny stocks that grew 200-400% in a year!

Highlights Some penny-cap companies have seen notable returns in the past year and are likely to grow in the future, considering their growth operations A mining stock mentioned here skyrocketed by about 336 per cent in the past year. ...

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2 Canadian penny stocks under $1 to buy in November

2 Canadian penny stocks under $1 to buy in November

Highlights  Investment in penny stocks is highly risky but may fetch short-term gains. A crypto stock mentioned here soared by roughly 362 per cent in the last 12 months. A waste management company noted its stock marking a one-ye ...

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Top 3 Canadian dividend penny stocks to buy before 40

Top 3 Canadian dividend penny stocks to buy before 40

Many investors are interested in penny stocks as such stocks are cheaply priced and are generally expected to offer higher returns than any other equity investments. However, at the same time penny stocks are highly volatile and vulnerable ...

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Frequently Asked Questions

Penny stocks can be rewarding if one can carefully time the market and trade these low-priced stocks when their prices rise due to some evolving market situation. However, one should note that the risk factor in penny stocks is comparatively higher than small-cap, mid-cap and large-cap stocks.

Penny stocks tend to be more volatile than large cap or mid cap stocks, generally speaking. For the most part, these are stocks of comparatively newer companies. Some investors don’t mind taking their chance on losing a few pennies for an opportunity to own the next FAANG stock for real cheap. This approach might be akin to buying a lottery ticket or having a go at a slot machine. It should never be one for a serious investor. Also, scams may exist in this space.

As the name suggests, penny stocks are stocks selling at low prices and generally trade under $5. Often, retail investors look for penny stocks in hopes of earning 10x or more returns on the amount invested. Investing in penny stocks is risky compared to small-cap or large-cap stocks as they belong to companies with not-so-strong fundamentals. There are a lot of factors to assess before investing in penny stocks, and you can consider the following. 1. Check the number of shares available. 2. See the liquidity of shares. 3. Check risk dilution (see if there are too many shares outstanding).

A penny stock may spike if there is a buzz around it, for example, if users on Reddit or some other platform are talking about it. In other cases, if a bigger company is contemplating acquiring the company that the penny stock represents, this may lead to its demand, and hence, price hike. Sometimes, an influencer like a billionaire investor dropping a tweet on the penny stock may also lead to amateur investors picking it. That said, a sudden spike may be followed by a steep decline in the price of a penny stock, which mandates extreme caution. It may be better to rely on a stock's fundamentals like the company's products/services and its market share before making any investment decision.

Penny stocks can be traded via any trading platform and account. Investors can add funds to their accounts in order to buy the required quantity of any penny stocks. It is necessary to closely track the price movements to make a profit if it attains target price or sells if one thinks price might fall to minimize losses.

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