Penny Stocks

Penny stocks are shares of small public companies that trade at low prices, typically below $5 per share. These stocks are often associated with companies that have low market capitalization and are considered higher risk investments due to their volatility and lack of liquidity. Penny stocks can be traded on major exchanges or over-the-counter markets. Investors are drawn to penny stocks due to their potential for substantial gains, but they also face the risk of significant losses and potential fraud. The low price per share can attract individual investors looking to buy into a stock at a low cost, but due diligence is crucial as these stocks may lack comprehensive financial reporting and transparency.