Canadian penny stocks offer great opportunities to get in on promising young Canadian companies before they become recognized for their abilities to build shareholder value. A Canadian penny stock is defined as a share that trades below $5.

Canadian penny stocks can be purchased through the Toronto Stock Exchange and the TSX Venture Exchange. Penny stocks in Canada specialize in commodities and technology. Canada is recognized for its abundance of natural resources and excellent universities that turn out high quality graduates.

Before you pour substantial amounts of money into Canadian penny stocks, know that there are reasons why they are so cheap. Too much debt, poor management, no earnings, or simply the lack of enough interested buyers to make the price go higher are just some of these reasons. Another thing that you should watch out if you decide in penny stock investing is that there are a number of unethical people who manipulate the price of penny stocks.

If you wish to make some investments in Canadian penny stocks anyway, do spare some time to track the stock's movements and see if it has made any headway. Gather meaningful information about the company, and resist the temptation to act on a hot tip passed on to you.

In order to buy Canadian penny stocks, the investor would need to go to a stockbroker that can purchase Canadian stocks. All Canadian penny stock trades settle in Canadian dollars. Like any good penny stocks, you want a company that is moving forward, growing sales and developing competitive products.