Were you thinking of buying penny stocks? You're not the first to thinking that they will find the next Google while it is still less than $5.00. Many stocks that trade on the markets were once valued at less than that. To be considered as penny stocks, most will say that the stocks value is $5 a share and then there are others that say $1 or less. Whatever the difference, buying stocks that are low valued doesn't mean that you'll become the next Warren Buffett.

There are many brokers out there that will sell you stocks that are valued at $5 or less, but be advised that not all brokers should be trusted. Brokers make their money by selling stocks to you. They may not be very forthcoming to you with all or correct information. There are many online brokers that make claims of investing in a company and in a few short months and their gains are 500% or better. What they don't tell you is that the company was one of a hundred that they've invested in. The other ninety nine companies have lost value or are completely bankrupt and they lost all the money that was invested.

Anyone that would tell you that they can and will make you money is not a professional. A broker may tell you that he has some insider information on a stock. Let me tell you now that that can't be further from the truth. It is illegal for anyone with inside information to share it with someone who not on the inside. Executives of a particular company need to inform the share holders of anything he/she does in regards to buy or selling any of the company's stock. Martha Stewart went to prison because she received inside information on her company and sold some of her stocks in the company.

When you're thing of buying penny stocks, don't listen to just anyone. Research the company yourself.