Penny stocks & shares are often used by the professionals to best effect, but it can be done by amateurs in theory and is often sold to them as a good method for making money. They can provide a reasonably return for anyone but in reality most people will have no clue how to do it and will lose money because of the volatility involved. Many short term investors will value the volatility of the penny shares and the ease with which you can trade. The informality associated with trading in penny shares, in comparison with the more rigid and controlled formal stock market, gives penny shares the asset of instant decision making, faster responses and more control of the trading process. This informality is of course a double-edged sword in that the whole system is more open to fraud and manipulation, this must be borne in mind in any negotiations. There is a place for penny shares in the overall stocks and shares market but due consideration must always be given to the lack of control when finalising a deal.

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