What is penny stocks?

[Lens]

These are stocks that traded typically below $5 per share . They are often issued by emerging companies . These companies have little or no financial history .

The major disadvantage of penny stock is that they are not traded in the major stock exchange such as NYSE or NASDAQ. They are often sold through a broker and it known for high risk.

 

[Etini]

Investing in penny stocks is risky due to their lack of liquidity, low trading volumes, and often being targets of pump-and-dump schemes. Information about the company and its finances may also be limited. It's generally considered wise to diversify investments into established, financially stable companies with a track record of growth.

 

[Nomad]

Penny stocks are low value stocks. There is no guarantee that you can actually make profits from these stocks. However, sometimes if you have invested in penny stocks from a genuine company, you might be able to make huge profits. sadly, a lot of scams go around penny stocks as whales frequently manipulate the market.