Why Should I Use Penny Shares to Build Wealth?

A strategic question. Why indeed?

1. A penny share would usually refer to a share available for less than $1.00. This makes the aquisition of shares manageable by even the most modest investment budget.

2. The London Business School's research indicates that generally the smaller companies outperform their big brothers every year (except in the depth of a depression). This provides a measure of reassurance for the novice investor of modest means. Provided the share selection is made carefully, the investor seems more likely to see frequent upturns in the share value.

3. It stands to reason that the best of the smaller companies will shine the brightest. This tends to be because the smaller companies are generally more focused, react quicker to changing market conditions and often better organised and run more economically. Decisions are taken more quickly and results are usually measured more objectively. They don't usually have the enormous resource cushions that the big companies have - and sometimes use to hide deficient performance.

4. The big investment houses and mutual funds often overlook the small cap shares. They either don't generate enough brokage or are not available in large enough quantities.

These factors offer attractive opportunities for the small investor. Provided he picks wisely.

Kevin Bauer is a keen investor in Penny Stocks and provides a article resource for other interested investors at http://www.pennystocktrading.net

MORE RESOURCES:

Out of the Dark Ages of Investing - Motley Fool

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US Investing $250 Billion in Banks - New York Times

table border=0 width= valign=top cellpadding=2 cellspacing=7trtd valign=top class=jfont style=font-size:85%;font-family:arial,sans-serifbrdiv style=padding-top:0.8em;img alt= height=1 width=1/divdiv class=lha href=http://news.google.com/news/url?sa=Tct=us/1-0fd=Rurl=http://www.nytimes.com/2008/10/14/business/economy/14treasury.html%3Fbl%26ex%3D1224216000%26en%3D41016671e60e6f5d%26ei%3D5087%250Acid=1257778017ei=SmH2SOw4n9L1BLvzyI8Jusg=AFQjCNFFGzu1rWaSKKJ7zTkyMdPigeGULwUS bInvesting/b $250 Billion in Banks/abrfont size=-1font color=#6f6f6fNew York Times,nbsp;United Statesnbsp;-/font nobr17 hours ago/nobr/fontbrfont size=-1He essentially told the participants that they would have to accept government binvestment/b for the good of the American financial system. b.../b/fontbrfont size=-1a href=http://news.google.com/news/url?sa=Tct=us/1-1fd=Rurl=http://www.3news.co.nz/News/InternationalNews/US-Government-invests-250-billion-in-major-banks/tabid/417/articleID/75789/cat/61/Default.aspxcid=1257778017ei=SmH2SOw4n9L1BLvzyI8Jusg=AFQjCNHMPkSjUFpKK63jKeg1Difil_84_gUS Government invests $250 billion in major banks/a font size=-1 color=#6f6f6fnobr3 News NZ/nobr/font/fontbrfont size=-1a href=http://news.google.com/news/url?sa=Tct=us/1-2fd=Rurl=http://www.bbc.co.uk/blogs/thereporters/robertpeston/2008/10/world_back_from_the_brink.htmlcid=1257778017ei=SmH2SOw4n9L1BLvzyI8Jusg=AFQjCNFFF7xgc268BXejBQOx3j44II2WJAWorld back from brink/a font size=-1 color=#6f6f6fnobrBBC News/nobr/font/fontbrfont size=-1a href=http://news.google.com/news/url?sa=Tct=us/1-3fd=Rurl=http://businessmirror.com.ph/index.php%3Foption%3Dcom_content%26view%3Darticle%26id%3D502:bank-consolidation-figures-expected-to-grow%26catid%3D23:topnewscid=1257778017ei=SmH2SOw4n9L1BLvzyI8Jusg=AFQjCNGmSik4BmcN6AkKLGdRd7ZsjbklGwBank consolidation figures expected to grow/a font size=-1 color=#6f6f6fnobrBusiness Mirror/nobr/font/fontbrfont size=-1 class=pa href=http://news.google.com/news/url?sa=Tct=us/1-4fd=Rurl=http://www.theglobeandmail.com/servlet/story/LAC.20081015.RBANKSEXPLAIN15/TPStory/Businesscid=1257778017ei=SmH2SOw4n9L1BLvzyI8Jusg=AFQjCNHQlvTWB8zt80r8CAjpsmcwkezhEgnobrGlobe and Mail/nobr/anbsp;- a href=http://news.google.com/news/url?sa=Tct=us/1-5fd=Rurl=http://www.washingtonpost.com/wp-dyn/content/article/2008/10/14/AR2008101403378.html%3Fhpid%3Dtopnewscid=1257778017ei=SmH2SOw4n9L1BLvzyI8Jusg=AFQjCNFUCurG8mg08MHgFQv6ZpDeUsA-6wnobrWashington Post/nobr/a/fontbr/font class=p size=-1a class=p href=http://news.google.com/news?sourceid=navclientie=ISO-8859-1rls=GGLG,GGLG:2005-22,GGLG:enncl=1257778017hl=ennobrall 2,887 news articles/nobr/a/font/div/font/td/tr/table

Treasurer defends Toll Road investments - Indianapolis Star

table border=0 width= valign=top cellpadding=2 cellspacing=7trtd width=80 align=center valign=topfont style=font-size:85%;font-family:arial,sans-serifa href=http://news.google.com/news/url?sa=Tct=us/2i-0fd=Rurl=http://www.indianasnewscenter.com/news/local/30883314.htmlcid=1257652701ei=SmH2SOw4n9L1BLvzyI8Jusg=AFQjCNHyUZ4_N004FSU9tMbyP0SWS8A81gimg src=http://news.google.com/news?imgefp=3mrmqy8Da1wJimgurl=media.indianasnewscenter.com/images/Decision200810.jpg width=80 height=60 alt= border=1brfont size=-2Indiana#39;s NewsCenter/font/a/font/tdtd valign=top class=jfont style=font-size:85%;font-family:arial,sans-serifbrdiv style=padding-top:0.8em;img alt= height=1 width=1/divdiv class=lha href=http://news.google.com/news/url?sa=Tct=us/2-0fd=Rurl=http://www.indystar.com/apps/pbcs.dll/article%3FAID%3D/20081015/NEWS0502/810150425cid=1257652701ei=SmH2SOw4n9L1BLvzyI8Jusg=AFQjCNGg6VvTgs04kNDh3wiUWqiip6HP1QTreasurer defends Toll Road investments/abrfont size=-1font color=#6f6f6fIndianapolis Star,nbsp;United Statesnbsp;-/font nobr3 hours ago/nobr/fontbrfont size=-1Mitch Daniels, criticized the state for binvesting/b 22 percent of money in the state#39;s Major Moves fund in mortgage giants Freddie Mac and Fannie Mae while b.../b/fontbrfont size=-1a href=http://news.google.com/news/url?sa=Tct=us/2-1fd=Rurl=http://www.wibc.com/News/Story.aspx%3FID%3D101159cid=1257652701ei=SmH2SOw4n9L1BLvzyI8Jusg=AFQjCNGvIBc3D-E1nqUlIm5M8XaV9ocFGALong Thompson Blasts State Investments/a font size=-1 color=#6f6f6fnobr93.1 WIBC Indianapolis/nobr/font/fontbrfont size=-1a href=http://news.google.com/news/url?sa=Tct=us/2-2fd=Rurl=http://www.insideindianabusiness.com/newsitem.asp%3FID%3D32046cid=1257652701ei=SmH2SOw4n9L1BLvzyI8Jusg=AFQjCNFE2ZDJGNrEi6SyfawYObe9RrW4vALong Thompson Questions Major Moves Investments/a font size=-1 color=#6f6f6fnobrInside INdiana Business (press release)/nobr/font/fontbrfont size=-1a href=http://news.google.com/news/url?sa=Tct=us/2-3fd=Rurl=http://www.courierpress.com/news/2008/oct/15/debating-major-moves/cid=1257652701ei=SmH2SOw4n9L1BLvzyI8Jusg=AFQjCNF1GJD0ZvDiaW1w7YNbWf9WXdCO_gDebating Major Moves/a font size=-1 color=#6f6f6fnobrHenderson Gleaner/nobr/font/fontbrfont size=-1 class=pa href=http://news.google.com/news/url?sa=Tct=us/2-4fd=Rurl=http://www.wthr.com/Global/story.asp%3FS%3D9181771%26nav%3D9Taicid=1257652701ei=SmH2SOw4n9L1BLvzyI8Jusg=AFQjCNEAx1zn_ykAepCCGsP2CrJRv11oNAnobrWTHR/nobr/anbsp;- a href=http://news.google.com/news/url?sa=Tct=us/2-5fd=Rurl=http://www.journalgazette.net/apps/pbcs.dll/article%3FAID%3D/20081015/LOCAL/810150334/1002/LOCALcid=1257652701ei=SmH2SOw4n9L1BLvzyI8Jusg=AFQjCNHwRKQvA3aXWKZ_Uf460AC1JE986gnobrFort Wayne Journal Gazette/nobr/a/fontbr/font class=p size=-1a class=p href=http://news.google.com/news?sourceid=navclientie=ISO-8859-1rls=GGLG,GGLG:2005-22,GGLG:enncl=1257652701hl=ennobrall 98 news articles/nobr/a/font/div/font/td/tr/table

Editorial: Investing in the places that bring us all together - NRToday.com

This Is the New Financial World Order - Motley Fool

Woelk: Investing long term with Buffs still not bad idea - Daily Camera

The Wallet covers the latest personal finance and investing news ... - Wall Street Journal Blogs

McClure says her investing savvy would help Corporation Commission - Tucson Citizen

Your portfolio: Poised for a comeback - CNNMoney.com

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Financial crisis: Few regulatory fears for alternative investing - Telegraph.co.uk

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