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A Comparative Analysis on the Profitability of Blue Chips and Penny Stocks

CHAPTER 1Conceptual Framework

Chapter 5 Summary of findings, Conclusions, and Recommendations Summary of Findings Conclusions1) There is no significant difference between the profitability of blue chips and penny stocks. 2) There is a significant relationship between the blue chip stocks and penny stocks based on their profitability. 3) There is no significant difference in the returns between blue chip stocks and penny stocks in terms of their Mean Price Return. 4) There is a significant difference in the returns between blue chip stocks and penny stocks in terms of their Risk Adjusted Return (beta).

RecommendationsTo future researchers:they must ensure that they have access to correct sources of data. must keep in mind that not all historical price data and other fundamental variables are available for all years and for all companiesthey should get data from reliable or official sourcesprepare a budget just in case they would want to have the official documents. study more about penny stocks and research about risk, earnings, behavior, and other variables that may affect penny stocks. The researchers also recommend other studies to use this researchs definition of penny stocks or to make a precise definition to have a common definition and avoid confusion. It would also be good if there would be some studies that look in the positive side of penny stocks. perform tests covering a longer period than our study or other years other than 2013wider sample size to provide more accurate results.Thank you!