Why do investors oppose to buying lower price stocks like pinksheets and bulletin board?

They're highly illiquid so if I wanted to sell my penny stock it would take days as opposed to minutes.

Why do investors oppose to buying lower price stocks like pinksheets and bulletin board?

Some of the reasons include unstable financial futures, balance sheets, the amount of cash on hand, the products they offer, and of course lack of information for the companies are some of the major turnoffs, for BB and OTC stocks, there are winners but its hard to find. Also cheap stocks are manipulated by the market which ( naturally) causes them to drop, this why very few penny stocks actually make it. Also Expenditures is another issue, hard to gather information on all that since they really aren't regulated like the big whig companies as far as financial balance sheets, and products.

Why do investors oppose to buying lower price stocks like pinksheets and bulletin board?

Many investors prefer solid, well-known companies whose stocks are actively traded (making them easy to buy and sell) to pipe dreams. Of course, some of those pipe dreams do work out; that's why others invest there.

Why do investors oppose to buying lower price stocks like pinksheets and bulletin board?

Usually those stocks (and the companies they represent) have serious issues.

Since most people want to buy low and SELL high, those issues may cause an already shaky investment to do even worse. And there's no guarantee of recovery (if the company goes bankrupt, its stock is worthless).

And plus, those stocks almost never pay a dividend. What's the point?

It all comes down to faith. The more faith people have in a stock, the higher it goes. And those companies are at the bottom rung of whatever sort of ladder one uses to gauge public faith.

Hope that helps.

Why do investors oppose to buying lower price stocks like pinksheets and bulletin board?

If you plan on holding a stock for any length of time, then the absolute most important thing, if you want to make money, is to buy stock in the right company, and that is very difficult to do, even for the professionals. Mid and large cap stocks are required to file quarterly and annual earnings reports, and most will even give guidance for how they believe that the company will do in the following quarters and years. But even the company's own estimates miss their actual earnings by more than 5%, more than 90% of the time. So picking good stocks is difficult to do, even with the best possible information. Now with most penny stocks, you get almost no information at all. So if it's difficult to predict how well a company will do, even given reams of information, how well do you think you'll do when you're given almost none. Basically, when you invest in penny stocks, you're simply gambling. You have no way of gaining a competitive advantage. What I like about investing in stocks, is that I know that if I apply myself, and am willing to put in the time, and do the research, then I will make money, no doubt about it. Not every stock that I pick is a winner, no matter how hard I try, or how much experience I have, I still pick losers, and I still make mistakes. But I do know that my efforts give me an advantage. I personally don't want to gamble. I want to beat the market by being better prepared, and working harder. I don't have to beat the pro's, and I don't even have to beat you, I just have to beat the market. Now you can go ahead and gamble if you want to, but we'll see who comes out ahead a year from now, me, or the guys who play the penny stocks. One thing that I will gamble on, is me.