# 🍊 Penny

By [Let Them Eat Cake](https://paragraph.com/@ltecake) · 2022-06-20

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**TL,DR: Like a bag of clementines, penny stocks are hit or miss**

Penny Stock / Clementines

*   unproven and unlikely to be perfect products
    
*   carry risk of buying a bad bunch
    
*   amazing when perfectly ripe
    
*   purchased in bulk
    

Eatamology “Penny” stocks are cheap like a penny, although in reality they count anything trading for less than $1.00/share as a penny stock.

Financials Penny stocks represent shares in small unproven companies. They are traded OTC (over the counter) which means major exchanges do not list them or give them credibility. Buying a penny stock is similar to gambling, as the stocks carry extremely high amounts of risk since they represent companies that may not be profitable, and may not be earning revenue either. The price of a penny stocks exemplifies the opposite of scarcity, which we can call abundance. There are an abundance of shares available relative to demand. At this juncture where the company has issued a lot of stock but few people are interested in buying, prices are low.

Where to Find Due to the level of risk, penny stocks will not show up in standard Mutual Funds or ETFs and are not suitable for unsophisticated investors.

Example Ingredients: Rolls Royce, Nokia, Bit Digital

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*Originally published on [Let Them Eat Cake](https://paragraph.com/@ltecake/penny)*