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 How do I invest in penny stocks. And How would I know which ones are good to invest in?
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Additional Details
I'm looking for companies to invest in not to buy....


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Like...
Gas & Oil
Pharmaceuticals
etc...
P.S. I'm only 17 year old male...
Additional Details
StevenWeinstein thank you for your input, but I have that under ...


 Currnecy Trading?
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Not looking to buy stocks here. Or drugs, but something that I can buy at a cheap price and resell for a decent profit? What are some ideas you have?
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wow raysor, that ...


 Is there any website which gives stock market tips & qoutes free of cost in india?
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For you, what is the best online trading service? (minimum deposit, brokerage fees,etc)...


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 How many stocks should i invest in?

Additional Details
that i can make the most money off ...


 I'm 100% new to the stock market.?
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 How safe is it to contnue investing in Mutual Funds and ULIP plans at this point of time?
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Paul A
Would it be wise to get a loan and then invest that laon money?
                     
 




rlloydevans
It can be, but you have to be pretty sure that what you are going to invest in is going to make more money than the interest you are going to pay.

This happens in many industries. For instance, real estate investors borrow money to flip houses. They pay interest for six months, but are able to sell their investments for thousands of dollars of profit, if they know what they are doing (please note that many LOSE money doing this).

I am an importer/exporter, and sometimes I borrow money short term, because I know that I can invest in a truckload of soap and sell it for more in 30 days.

It has become very popular for lenders on Prosper.com to to borrow money from others on their good credit (Prime AA at perhaps 7-8%) then lend it to Subprime B/C/D borrowers at 14-20%.

So there are ways to do it. However, the main repeating theme is you need to be very sure that your investment has the profit potential to make your borrowing worth while.


lynn
Rating
No, it would not be wise to get a loan to use to invest. First, you would need to know what interest rate you would be paying on the loan. Then decide what types of investments you would be putting the money in. Then figure out what the percent return on your investment would be. For this to be a wise decision you would need to know that you would be making more from the investment (after investment expenses) than you are paying in interest on the loan. And any investment that has a guaranteed rate of return higher than what you would be paying in interest is pretty much non-existent.


Chef Frisbee
Nope - because odds are your loan interest will always be higher than rate of return on your investment


Steve B
Absolutely not. If firms Citibank can't get more for the money they loan you, what makes you think you can do better? You're taking a hell of a chance if you go the route you're thinking and could end up with nothing and still need to pay back the debt.


pccomp666
Rating
Not unless you can get a 1,000,000% guarentee that the money you make of the investment is going to cover the cost of the loan


kevinjohnbrown
My answer to you is no it is not wise until you know for sure what you are getting yourself into and you are very confident that you will not lose the money you borrowed


Ted
Sure. I do it all the time. Just make sure that the return on the investment is higher than the loan interest rate. his is called a "spread".


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