Sometimes it seems like you just can’t get a grip on those hot penny stocks and the stock market is getting you down. There are so many of them and so many companies out there, that it’s often difficult to figure out exactly what you would like to invest in. Investors always face a very simple dilemma — do you invest according to what you are interested in and what your passion is, or do you invest for profit?
Hot penny stocks and the dilemma of investing
Regulators and the corporate lobbyists demanding the regulations are most likely so anti hot penny stocks because they challenge their business model directly and threaten to remove their market dominance. For instance, pretend there is a little-known company that sells some peripheral to a computer that nobody has ever heard of. It really doesn’t do much, it’s a combination of a mouse and a number pad and most people didn’t even know they really needed one until the massive viral marketing campaign that came about after a penny stock investor bought up 1 million shares. And then the profits of the company increased and the investor sold everything off.
Sometimes you get lucky when you invest in hot penny stocks such as these on the stock market. You are successful in raising the company’s profits and making a profit too when you sell the stocks.
What separates this example from the rest
But there are bad examples too. What if the product is something that is illegal? Are the investors responsible? Is the sudden increase in customers and clients who may not have known it was illegal an issue? In this case, perhaps consumers could be protected from penny stock questions and regulation might make sense. The stock market, as with many other things, grows and develops. It can evolve quickly overnight and respond to various situations. Economists are often faced with the question of whether they are merely observers (descriptivists) or given a calling to modify the market in some way (prescriptivists). If they remain neutral and just describe penny stocks they are accused of being libertarian, Randian and fascist. The irony is that those who support the eradication of penny stocks and regard them as illegal are often representatives of large corporations, as in lobbyist lawyers with an agenda.
Free market divisions and hot penny stocks
Hot penny stocks therefore are another frontline battlefront in the stock market division. As with political and sociological ideas, they can be put on a spectrum that goes from far left to far right. Economic ideas are the same, and it has been said that those supporting penny stocks belong on the far left (completely libertarian) and those against on the far right (fascist corporations). On the other hand, viewed from the other side, they would describe supporters of the free market as fascist and far right while supporters of the regulated market consider themselves of the left. So hot penny stocks and stock market woes are not a new thing.