Even the casual investor knows that penny stocks are inherently risky. That risk increases as the price of the stock decreases. Most investors understand that they can lose money say 10, 20, or even 30%. But if you were to utilize stop and limit orders the potential for loss/or gain could drop dramatically. But that is a topic to be discussed another day.
For an investor in Axia Group ( AXGJ ) a 30% loss is a drop in the bucket. The stock has plummeted at an alarming rate with little or no bounce along the way. Just recently had a very rare up tick to $.0003 before falling hard. Today AXGJ dropped to the land of unwanted stocks. The bid disappeared. No one wants to buy this stock - not even for $.0001. There are plenty of investors looking to sell out at .0001, and I imagine anyone buying this stock is only getting more freshly printed shares of this literally diluted to death stock. What happened here? Who is to blame for misleading investors into buying this stock? Before I try to answer any of those questions take a look at another stock. MHUS aka aptly named Microholdings.