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The information here is not to be taken as financial advice, it is for information purposes only.

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BLOG – What is a Penny Stock? – September 15, 2021

What is a Penny Stock?
Penny stocks are typically low-priced shares available for purchase on a stock exchange.

You may have heard good things and bad things about penny stocks. Because the cost is so low and the stocks have a tendency to fluctuate significantly from day-to-day or hour-to-hour, there are significant risks that someone can make (or lose) a lot of their investment. For many people, there can be quick turnarounds and opportunities to essentially gamble where they want to invest and make a profit during short term investing; and in many other cases, a financial investor that is looking for a longer-term investment that may result in greater returns tends to look at penny stocks as a great opportunity. Investors can play it safe and purchase established stocks that cost multiple dollars per share and up, or they can make a smaller investment in penny stocks and have higher returns. There are even those who invest significant amounts of their earnings in penny stocks because they see value in the organization, its investment strategy, the potential for returns or alignment with the products or services it provides. With the right research and knowledge, investors can be successful, and if they don’t do their diligence, the opposite can be true.

Penny stocks are generally those with a price of less than five dollars per share, and are likely to be newer companies looking to become established in the market, or companies that have fallen on hard times that are looking to rebound. Companies do not become successful overnight; they have to work their way up to succeed, so many companies start as a penny stock and grow from there.

The most important factor is to research a company, see its financial records and performance, look at its investment strategy and do your due diligence to make sure you are comfortable with any possible risks. The best way for penny stocks to succeed are to grow over time. You may see penny stocks grow significantly, e.g., from $0.25 per share to $25.00 per share and up, and these may also be less successful, including going down in price to e.g., $0.15 per share (and investment money can be made or lost).

The TSX.
Like many stocks, the Toronto Stock Exchange (TSX) is the platform where investors exchange (buy and sell) stock. It is the eight-largest exchange in the world, and has a long history. Its main function as a stock exchange, is to serve as a central place for those seeking investment for their company and those willing to provide such investment. The TSX has a Venture Exchange, which Yorkton Equity Group is a member. The TSX has penny stocks, established stocks and many opportunities for exchange.

 

Where do we fit?
Yorkton Equity Group Inc. (YEG) follows a risk-averse business model, focused on multi-family investment properties in Alberta and B.C. through its venture capital on the Toronto Stock Exchange (TSX.V: YEG). YEG has portfolio in Langford, Surrey, Kelowna and Edmonton regions, owning multi-family condominiums and land zoned for tower developments. The group offers private placement opportunities; investors may also purchase stock directly through their preferred brokerage. YEG has a solid investment strategy backed by real estate, including luxury condominiums such as Bentley Luxury Condos in Windsor Park, Edmonton. It is stress-free investing in real estate development. Get in touch if you’re interested in exclusive investment opportunities with YEG. Please note: past performance history is not a guarantee of future results.

https://www.yorktonequitygroup.com
https://www.bentleyluxurycondos.ca

 

TSX.V: YEG

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