Auto & Trucks
    Business & Finance
    Computer & Internet
    Food & Drink
    Health & Fitness
    Home Improvement
    Kids & Teens
    Online Business
    Recreation & Sports
    Self Improvement
    Site Promotion
    Travel & Leisure
    Web Development


Why Should I Use Penny Shares to Build Wealth?
(Business & Finance)
By: Kevin Bauer

A strategic question. Why indeed?

1. A penny share would usually refer to a share available for less than $1.00. This makes the aquisition of shares manageable by even the most modest investment budget.

2. The London Business Schoolís research indicates that generally the smaller companies outperform their big brothers every year (except in the depth of a depression). This provides a measure of reassurance for the novice investor of modest means. Provided the share selection is made carefully, the investor seems more likely to see frequent upturns in the share value.

3. It stands to reason that the best of the smaller companies will shine the brightest. This tends to be because the smaller companies are generally more focused, react quicker to changing market conditions and often better organised and run more economically. Decisions are taken more quickly and results are usually measured more objectively. They don't usually have the enormous resource cushions that the big companies have - and sometimes use to hide deficient performance.

4. The big investment houses and mutual funds often overlook the small cap shares. They either donít generate enough brokage or are not available in large enough quantities.

These factors offer attractive opportunities for the small investor. Provided he picks wisely.

Kevin Bauer

This article was posted on Aug 22, 2005

About The Author
Kevin Bauer

Kevin Bauer is a keen investor in Penny Stocks and provides a article resource for other interested investors at

                                 Other Articles By Kevin Bauer


InfoNewsLine FEEDBACK System

Advertising | Auto & Trucks | Business & Finance | Computer & Internet | Family | Food & Drink | Health & Fitness | Home Improvement | Kids & Teens | Legal | Marketing | Online Business | Parenting | Recreation & Sports | Self Improvement | Site Promotion | Travel & Leisure | Web Development | Women | Writing |