The $5 Stock Strategy in Action
I’ve shared a lot in recent weeks about the overlooked opportunities in “$5 stocks.” Essentially, an SEC rule dating back to the 1930s makes stocks that trade under $5 a share all but totally off-limits to the large institutional investors that tend to move markets. Many institutional funds have mandates and rules that force them to sell as soon as a stock falls under $5, no matter its quality or potential. And Wall Street’s analysts pretty much ignore $5 stocks.
Read More