Companies do not boom into success as soon as they are founded, they are slowly created by proper management and maybe a bit of luck to climb to the top. Newly founded companies sell their shared at a low price to raise capital and these are called penny stocks. Penny stocks are defined as being less than 5 $ and have the potential of rising thus making money for the investor. Many scour the penny stock trade to find a wining stock but choosing the right ones is not all in a name, the number of stocks and their worth.
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