A growth stock, a share in a business that's shown above-average earnings and has the potential to grow faster than the overall economy. Because such stocks generally increase in price more quickly than other stocks, you may pay more for each share — based on what the company's current earnings are — than you would pay for the stock of a slower-growing company. If the stock's value increases, you can claim that value in the form of capital gains.(cpd.)
before you investing a penny, better to considering above mentioned things. try to pick winning growth penny stock. commonly, most of the people downgrade penny stock. they never give an idea which is the best-growing penny stock. now, promote another type of share. again you will lose from that share. if you think penny stock is not good for investment, TESLA never to go upward. earlier TESLA has trade @ less than USD 5 . how much today, investors willing to pay?? TESLA is not still a penny. that's why, I explained to you, pick growing penny other than loss-making. growing penny significantly move up with reasonable reasons.
most of largest company's stock has been traded as a penny, some or more times. you should have analytical skill pick growing penny. every penny is not good for long-term investment. you should have the ability to pick a winning penny considering a higher PE ratio than the broader market, higher revenue growth, accelerating earnings growth, market dominance, product & market development, innovative mgt.
solid penny stock that rewards you with profitable gains is against you. That said, finding a diamond in the rough isn’t impossible if consider present and potential growth.
Otherwise, don’t bother with penny stocks, unless you have money to burn.
another thing is, don't ignore penny stock success stories & disregards tips and read disclaimers.