Most people think buying penny stock are high risk, but it is not entirely true. It depends upon the company’s performance. Generally, penny stocks are stocks of those companies that are new in the market.
These stocks are not so costly but buying them is quite risky because they are the stock of new companies, and there is no assurance that they will perform well in future. But few companies will achieve growth in the market, and you hold a penny stock of them. So it will be beneficial for you.
In this article, we will discuss the penny stock and the top penny stock listed on Nasdaq, one of the most acceptable indexes of which consists of the 100 largest companies stocks (mainly U.S. companies). However, before we start talking about penny stock which you can buy from Nasdaq, we explain what penny stock is?
What are Penny Stocks?
Penny stock shares are the stocks that should be traded in less than 1 euro on the U.K. stock exchange, whereas they are traded in less than 5 dollars over the U.S. stock exchange. The fewer price referred to the stock, which is likely to be a majorly risky investment.
However, the common explanation of a penny stock is a stock that holds the value of 1 euro or 5 dollars in the United Kingdom and the United States, respectively. Their values are generally more than these given guidelines as well as sometimes their prices are lower than this.
Mostly they consist of high volatility, which makes them highly risky stocks, But they all consist of high chances of significant growth.
You can easily see the high demand for trading penny shares or penny stocks in the U.K. Because if you consist of 1000 euro which is a way enough for buying a huge number of penny stock of a smaller company whose stock is available for trading at low costs.
They are a way better investment company to the blue-chip stocks for which you need to pay high amounts for holding a small portion in a company. Suppose the penny stock you hold will be added to the list of blue-chip stocks which will provide you with a significant return in the future.
How to trade Penny stocks?
Register on the broker’s website : For trading penny stock, you may require a trading account which you can open on any broker’s website. Some of the leading brokers are InvestBy and Primefin. They provide a wide range of stocks and account options to their clients.
Add funds to your trading account: After opening an account, you may require to add minimum funds to your trading account. Some brokers set the limit for opening an account on their website. So you need to submit a minimum deposit in your trading account.
Analysis of better stock for yourself: When you complete the account opening process, now you need to analyse better penny stock for trading. Here we provide you with a list of top penny stocks listed on Nasdaq.
Determine Whether you need to buy or sell: After selecting stocks, you need to determine either you want to buy new stocks, or you want to sell the already held ones.
Handle your risk :
When you buy a stock, you need to manage risks related to those stocks, such as staying updated with the activities related to your stocks and news announcements that can have major effects on those stocks.
Top 7 Penny Stocks to Buy on the Nasdaq
Here we are going to provide you with detailed information about the top 7 penny stock listed on Nasdaq.
- Endo International (NASDAQ:ENDP)
- Eyegate Pharmaceuticals (NASDAQ:EYEG)
- WiMi Hologram Cloud (NASDAQ:WIMI)
- Uxin Limited (NASDAQ:UXIN)
- Solid Biosciences (NASDAQ:SLDB)
- PowerBridge Technologies (NASDAQ:PBTS)
- electroCore (NASDAQ:ECOR)
Endo International (ENDP)
It is a pharmaceutical company. Endo International is a very big company which consists of way bigger businesses. This company has various business sources like generic pharmaceuticals, branded pharmaceuticals and others. Its average stock prices are $6.57. And its high target price is $11. Which indicators better returns in the future.
The company reported $714 million in revenue in the second half and nearly $ 687 at the year end. Similar to this company, all the above-mentioned companies are performing well in the market. These stocks are considered in the penny stocks category. You can buy stocks of these companies to make good returns in future.
Investment in penny stock consists of both possibilities of making a profit in the future as well as chances of losses. Here we provide you with complete details about penny stock. Check here the top 10 penny stocks to buy from Nasdaq in which you can invest your funds to make money with a recommended broker investBy. Read full InvestBy review before start with broker thanks.