Penny stocks are traded at very low price per share on the stock exchange and are quite different from the big companies stock. Unlike blue chip stocks; they have low market capitalization, prone to scams like pump and dump schemes, low traded volume, have high volatile price movement and is a risky trade for the investors. They have the tendency to move either direction irrespective to market conditions.

In spite of these shortcomings or challenges in penny stock trade, they always remain in radar of investors and traders for both long and short term investment. They have a potential to give huge returns to the investors in very short period of time like double or triple the returns in just a matter of couple of months. read more information about Penny stocks at http://pennystockfinders.com