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It is in doubt if penny stocks can make a large profit. Undoubtedly some people have made huge amounts of money with stocks. They may have started on penny stocks and then eventually moved up to other more lucrative stocks using larger amounts of money after gaining experience.

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Penny Stocks are any stock that deals in less than $5 per share. A good number financial advisors and long-term investors tend to keep away from them totally owing to the extremely high risk that involves owning them. They are usually likely to vary wildly in price. But some report amazing gains in a few days.

The common stocks which are traded over OTC Bulletin Board or pink sheets carrying per share value of $5 or under that are known as penny stocks. They bear absolute low value and carry limited liquidity.

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