Lonewolf... let me begin by saying I am in no way shape or form an expert in this field. However, when you say...."this will give you leverage meaning you can buy alot of stocks say if you have $1000 to invest then, you can but 500 shares@$2. and if the stock price increases by $.5 then you earn $250"...From what i understand...leveraging is either a use of debt or options. Doing so increases both potential risk and reward...correct me if I m wrong. Further, $.5 increase in $2 dollar stock should be valued in percentage term with stock that is worth $50. From what i have seen...incremental changes in price of stock that is $100 will be more than say $2 stock. But then again...what do I know. :o)