Penny stocks

Penny stocks are shares of very small companies, typically traded for less than $5 per share. They are considered high-risk investments due to their low price and market capitalization. These stocks often have less liquidity, making them harder to buy or sell quickly. They might be appealing for their potential for high returns, but they also come with a greater chance of loss. Investors should be cautious and do thorough research before investing in penny stocks, as they can be prone to fraud and scams compared to larger, more established companies.