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/biz/ - Business & Finance

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24949140 No.24949140 [Reply] [Original]

So let me get this straight, if a stock goes down to 0.01$, which means it can't go any lower, if you buy at that price and the price goes up to 0.02$ you basically double your money.

What's the catch here? This seems like easy money especially if you buy several 0.01$ stocks and wait for them to go up just 1 cent.

>> No.24949163

This is literally the entire premise of penny stocks, anon. Boomers have been gambling $1000 here, $500 there on penny stocks since we weren't even alive.

Same thing I do with defi shitcoins today

>> No.24949191

Stocks could be delisted and crypto can drop way lower than 1c

>> No.24949218

someone post the screencap

>> No.24949338

>>24949140
Based

>> No.24949984

>>24949140
if your iq goes down to 0 then youre op

>> No.24950000

>>24949140
based retard

>> No.24950072

Because if it goes to - 0.01 you start to owe the company money

>> No.24950110 [DELETED] 

It is hard to find a good platform with crypto solutions to invest in.

Studied DuckDAO, read twi posts of crypto skilled users. Seems like it is a transparent platform with an investment system. Do you know anything about it?

>> No.24950810

>>24949140
The catch is that if a share goes that low in price the company might do a reverse share split in order to stop being delisted or to artificially boost the price
For example this happened to a certain European airline company a few days ago whose share price had crashed to 6 cents from a previous high of €37
They gave one new share for every one hundred shares in other words they reduced the number of shares
So if you owned 100 shares you got 1 in return
The price per share then jumped from 9 cents to 9 euros
However the value of your shares stayed the same because instead of having 1000 shares at 9 cents worth 90 euros you now had 10 shares at 9 euros worth 90 euros
So the price of the shares went up, but because the number of shares was reduced, the value of your holdings stayed the same
This is a temporary benefit for the owners of companies that do this because a higher share price looks superficially better and helps them to avoid being delisted and to raise extra money to help save the company
However it is useless for investors because the chances of a poor penny stock doubling from a higher price is much lower than the chance of it doubling if the share was priced in pennies
If a penny stock ever gets a reverse share split than you are better of to dump it

>> No.24950877

>>24949140
>What's the catch here?
you need to find people willing to buy your 0.02$ shares which are probably tied to a very risky company with poor performance (hence why the price is so low in the first place)

>> No.24950926

>>24950810
>company that's currently useless can adjust stock numbers to their liking to nobodies benefit, just to make it look like they're not useless
>this is OK and perfectly cool with our supply demand make yourself useful bootstraps culture
Big think

>> No.24951029

It can always go lower.

Companies do reverse splits in those situations.
For example, lets say you own 1000 shares of a company with share price 0.01 dollars.
They do a 100:1 reverse split. Now you own 10 shares and the share price is 10 dollars.
It can go to 0.01 dollars all over again but now you have 10 shares instead of 1000.

>> No.24951035

>>24950877
what do you mean find people? can't i just hit the sell button and it automatically sells it? i don't understsnd

>> No.24951054
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24951054

>>24949140
>if a stock goes down to 0.01$, which means it can't go any lower,

>> No.24951055

>>24949140
MMED started at .08 and pumped to 5 dollars, which means you'd have made a 62.5x if you held it from top to bottom.

However penny stonks which remain penny stonks are low liquidity and thus investing more than a pittance is stupid, but if it's a penny stock which has BIG NEWS and is just currently undervalued then it's a smart thing to buy and hodl for a few years.

>> No.24951103

>>24949140
kek

>> No.24951109
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24951109

>>24950926
Boomers are a generation which heard the "boomers aborted gen x so there aren't enough kids to pay for retirement" shtick since the 1980s and resolved in the 1990s and 2000s to price millennials out of the market by mass importing cheap labor. Why would you not expect a generation which created every problem by murdering their own kids in the 1970s not to be total fucking garbage hypocrites?

>> No.24951172

>>24951035
>what do you mean find people? can't i just hit the sell button and it automatically sells it?
when you hit the sell button the computer will register your sell order and wait till it has enough matching buy orders to execute the transfer of shares from your portfolio to the buyers portfolio
for non-penny stocks you often have market makers providing liquidity (i.e. they immediately buy the share of you instead of you having to wait for a matching buy order) in exchange for a small fee known as the bid-ask spread
penny stocks rarely have these market makers