Hello,I am new to stock market investing, but I am bullish on...

Hello,

I am new to stock market investing, but I am bullish on silver. I've learned a lot in the last 2 months since starting to invest, but must admit that I am baffled as to why (it seems to me) that AYN was started as a penny stock.

Looking in the 2009 Annual Report, p.12, Recapitalisation Proposal, it talks about the 100s of millions of shares that were issued at $0.01 cent each.

The other day, ASX issued a "please explain" to AYN about the sharp spike in the share price. I think it moved 0.005 of a cent. Hmmm... Must admit it worries me a bit.

On 16-11-2010, a new PNG Gold company called "Kula Gold Ltd" issued 44,500,000 shares at $1.20 each. This is the complete opposite of what AYN has done.

Why did Kula Gold issue such expensive shares? Why did they not just do something like AYN, and issue 100s of millions at $0.01 cent each??

Could you please offer advice as to why some companies like to start as penny stocks, and where is the perceived advantage in operating like this??

Thanks very much.