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jkarolyi jkarolyi is offline
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Join Date: Feb 2004
Location: Socialist Republic of California
Posts: 2,129
What's the story behind penny stocks? How do they make money?

I get these spam emails occasionally pumping a stock of some company in Mamasia trying to "exploit the synergies between end users and utopia seekers" or something of the like. It's always "ready to burst off the charts", and usually priced at $.02954 cents a share or so.

We all know about the pump and dump spam mails, but are these real companies that are offering stock sales? Who makes money off these penny stocks?

I looked up their stocks on eTrade and sure enough you can buy them, so they must have some sort of legitimacy.

Thanks in advance for satisfying my curiousity.
Old 10-17-2006, 09:20 PM
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