
Low-Priced Stocks
Low-priced stocks, often called penny stocks, are shares of companies trading at relatively low prices, typically under $5 per share. They are usually associated with smaller, less established companies and can be more volatile and riskier than established stocks. Investors often buy these stocks hoping for significant price increases, but they also face higher chances of losses and manipulation. Due to their low cost, these stocks are more accessible to individual investors but require thorough research and caution. They are generally traded over-the-counter (OTC) rather than on major stock exchanges.