Penny stock is one indicator for you who want to invest. The difference between penny stocks and other stocks is where you can buy cheap cents. With cheap capital, then you can start investing in stocks with little capital. In contrast to other ordinary stock exchanges that require substantial capital to make an initial investment. The movement of the stock market is certainly influenced by several factors, both micro and macro factors. Then, how about the movement of penny stocks? Because both are stock instruments, the driving factors in the stock market are also penny stock movers today.
Then, what are these factors? Here are 5 factors that you can make an excuse for because of the movements of these stocks.
1. Action from the company
First, you must be able to see and know what policies have been made, or will be carried out from the company where you make the investment. The policies made, which have been implemented, or that will be carried out will greatly affect the shares of the company. If it is felt that the policy is indeed felt to be very appropriate, then you can entrust the company as a place for you to invest your capital investment. But if not, then you need to rethink to make an investment in the company.
2. Government policy
Secondly, you also need to know what government policies are on capital market issues. By knowing all the decisions of the government in the capital market, it will greatly help you in making a decision to invest in the capital market, such as shares. Because the government is the highest regulator of the country, all decisions that it has made must be followed, and this greatly influences the performance in the country, for example the shares.
3. Fluctuations in native currencies with foreign currencies
Third, is the selling and buying exchange rate factor of the value of the original currency with a foreign currency. This is also one of the most important and most influential factors in penny stock movers today as well. If the value of the original currency is smaller than the value of the foreign currency, the value of each share will decrease, and vice versa. If the value of the original currency is greater than the value of the foreign currency, then the value of each share will rise as well.
4. Macro fundamental economic conditions
Fourth, namely macroeconomic conditions. These macroeconomic conditions specifically only occur within the country, and cover almost all existing economic conditions. However, what usually becomes a reference to this problem is the activities and policies carried out by banks, especially the central bank. Bank policies that affect it are like changes from rising or falling bank interest rate policies. Examples such as bank interest rates in savings. Then, the inflation rate also becomes part of this macroeconomic condition. Coupled with the state of citizens who experience unemployment.
5. Market rumors and sentiments
Fifth, there are rumors and market sentiments that exist. This condition is also quite a basic factor in the movement of a stock will experience an increase or decrease. For example, if a high-ranking official from a company issues a positive or negative opinion, usually the value of a company’s stock will fluctuate, whether it goes up or down. Including penny stock.
What are penny stocks? Penny stock is a stock of a company that has a very small value than the usual stock. It could also be the condition of a country. If the country is hit by economic or political problems, for example, then the value of the currency of that country will usually decrease. Thus, this is also very influential in penny stock movers today.