Suppose you have 250$ and you bought 446 shares of company XYZ each for 56 cents, would it be a good short term investment to wait till the stock price rises by 16 cents to then make 80$ profit ? Does it sound like a good idea ?

No. Do not dabble in penny stocks. You're just gambling.

Well, depends. one.if it only goes up by 16 cents u r only making a 16 cent profit..Which is a $7,136 profit..but if u were to wait for it to go to 1 dollar a share u would receive a profit of $19,624. So It would be a good investment. But if the company has a possibilty of being open for a while & the stock climbing, l would keep it in there for a long-term investment not a short term. Eventually that stock will rise above $1. If it raise to $2 u will have a profit of 64k..which one sounds better?

No, since you would hardly make enough to cover brokerage fees and you are taking the chance that to price would drop to 16 cents instead of going up.

what makes u think the stock will rise?? since u do not mention a particular company l can not give u my real opinion. These kind of trades r pure money wasters. Penny stocks rarely pay off. If u want high volatility & good big companies look into trading stock options perhaps. A move of 5% in a stock price can mean a 50% move in the companies stock option. All this is in the same company too. Stay away from Penny stocks trust me no matter how good it looks it wont work. If it works once it probably will not work again. Bottom line that is not a smart investment, its not even an investment. Its pure speculation.

One does not ''invest'' in penny stocks, they trade penny stock since they are not considered to be investment vehicles.

If you bought at 56 and it moves to 72, you would be foolish not to take you profit. And you never can get hurt taking a profit.

lets talk