Penny shares
Barring a few exceptions, all the huge companies sitting at the top of the FTSE 100 started life as penny shares. They all sold products and services that people wanted and kept growing at a consistently fast rate. Perhaps they bought up some of their rivals or diversified into new areas of business. However they made it, these companies have been winners and consistently successful for some time.
Amongst the penny stocks that make up the Alternative Investment Market (AIM) today there's likely to be some that will follow the path of those before and become the industry giants of tomorrow.
This is what makes investing in penny shares so exciting. It's a high-risk, high-reward strategy.
These are exciting times for penny shares
Here at MoneyWeek, we're lucky enough to have our own penny stocks expert - Tom Bulford.
If you're serious about investing in penny shares, sign up to his free email, The Penny Sleuth, and receive his top ten tips on investing in penny shares along with twice-weekly analysis of the penny share market absolutely free.
Penny Sleuth is an unregulated product published by MoneyWeek Ltd.
Recent articles
(3)
(24 May 12)
This decade will be defined by developments in biotechnology, says Tom Buford. Here, he explains the role biotech is playing in resolving the global food crisis.
(22 May 12)
Fraudsters touting fake shares have become a serious threat to investors. Tom Bulford explains how to avoid getting caught out - and what to do if you're approached.
(17 May 12)
Network pharmacology - finding alternate uses for existing drugs - is a growing area of medical research. Tom Bulford looks at one small-cap pharma that could be about to make an exciting breakthrough.