What are Penny Stocks?
Penny stocks are stocks that typically trade below $5 per share. They are often associated with small‚ early-stage companies that have a market capitalization of less than $300 million. These stocks are known for their high volatility and low liquidity‚ making them a risky investment option.
Why Invest in Penny Stocks?
Investing in penny stocks can be appealing to some investors due to their potential for high returns. Since these stocks trade at low prices‚ even a small increase in the stock price can lead to significant gains. This potential for quick profits is what attracts many investors to penny stocks.
