Where can I buy penny stocks in South Africa?
Select a stock trading platform. If you’re a newbie, do your homework before making a decision.
Create an account. You will need your ID, bank account information, and potentially one or two more FICA papers.
Confirm your payment information. Your account must be funded through bank transfer, debit card, or credit card.
Locate the shares you wish to purchase. Search the site for available shares and purchase them. It’s as easy as that.
Disclaimer: This material should not be construed as an endorsement of futures, stocks, or other financial instruments.
Penny stocks are generic terms for low-cost shares of tiny, generally recently listed firms. There are several ways to characterise South African penny stocks. According to certain definitions, penny stocks are listed firms with a market capitalization of less than R1.5 billion, which is why they are also known as small-cap stocks. Stocks with a share price ranging from 10c to R10 per share are another description. This, however, is a fairly ambiguous definition.
Investors are typically drawn to penny stocks because of their low pricing and possible growth prospects, but there are hazards associated with tiny stocks as well.
What exactly are penny stocks?
A penny stock often has the following characteristics:
Small business
R1.5 billion in market capitalization
Recently listed newer firm
Below R10 per share
Financial track record is limited.
It does not pay dividends.
Should you buy penny stocks?
You should think about investing in penny stocks if:
You have an extremely high risk tolerance.
You’re a seasoned investor.
If the share price falls dramatically, you are prepared to cut your losses.
You have a lengthy investing horizon and are ready to endure volatility.
You’re willing to “take a chance.”
