Expert: Dr. Joseph de Beauchamp - 2/28/2005

Question
Hi Dr. Joseph,  I was wondering what Penny Stocks are.  Are they what it says,  Cheap Stocks?  Or is it way more compex than that?

What are the chances that you could become rich off Penny Stocks?  Or are the chances of going broke higher?

Also, What are Blue Chip stocks?  I heard they are just Big companies.  Are Blue Chip stocks for the long run and Penny Stocks for the Short term?  Any Info is greatly appreciated.  Thanks for your time.  Dan.  

Answer
Penny stocks are usually thought to be under $5.00 per share. Most broker dealers will not recommend stocks under $5.00 and therefore look at these as penny stocks.

Never much chance of making a play with penny stocks.

All stocks for investments should be long term.

Dr. Joe de Beauchamp