The stocks in the tech sector are classified on the basis of merchandise and services after identifying them with the examination, advancement, and distribution of technology. The related organizations’ work moves around hardware assembling, program making, software, internet, PCs, etc. and the administrations that identify with data innovation.
These stocks trade at a lower price. These stocks are easily available on the Stock Quotation market by the trade name ‘Pink Sheets’ and also on the over the counter bulletin board. Tech stocks do not trade on the high-profile market exchanges.
Money can be made by trading on tech stocks only if one does complete research before investing in the firm. Investors should not invest in start-up companies as there are higher chances of incurring a loss. An investor should first watch the company grow and then invest.
Penny tech stocks have the potential to rise very quickly, thereby giving the investors huge profits and this makes these penny stocks unique in their own way.
Pros and of investing in Penny Tech Stocks
- There is a high probability of getting rich quickly by investing in these stocks.
- They are available at a very cheap price.
- They are very volatile, i.e. their prices increase and decrease at a very fast pace, so the profits are maximized in such cases.
Cons of investing in Penny Tech Stocks
- There is a very big risk while investing as these companies are usually not very well financed and their prices can drop down anytime
- There are chances of frauds as many companies are set up without a license
- The ‘Pump and Dump’ strategy, lies and scams are very common phenomena in this field.
Looking at the brighter side, we see that these minor companies tend to become the leading companies of the future. So wisely investing in Penny Tech Stocks can actually result in enormous profits for any investor.
Some of the leading tech companies to invest in are
- Okta Inc. (NASDAQ: OKTA)
- Although this company is not much famous and one might not be even familiar with this but investing here can bring out good profits as this company shows the tendency to grow fast and very soon will be among the top Tech Stock companies.
- The best part of this company is that it has secure cyberspace wherein it allows access to only limited users while for others there are restrictions.
- Glu Mobile Inc. (GLUU)
- This company is famous for making games for smartphones and hence is very popular among smartphone and tablet users. Due to this reason, their stocks are quite affordable and have a higher potential to bring huge gains for their investors.
- All their fame and the reason why we can call this company reliable owes to the fact that their games are very popular and are usually based on action movies or celebs. For example, their game on the life of reality TV star Kim Kardashian.
- Whenever they come up with a game that goes on to become a massive hit, that will be the time when their investors will profit from them
Overall, investment in penny tech stocks is mostly a game of profit only if one is aware of all the points to follow and unfollow.