Penny Stocks: Why You Should Always Stay Away
by Dan Burrows
Aug 18, 2021
3 minutes
Penny stocks – those that trade for low prices, often less than a dollar per share – are dangerous. Period. Indeed, with a few exceptions, investors should steer clear of these uber-cheap stocks, which typically trade over-the-counter and not on a major exchange.
Call them penny stocks, microcaps or OTC stocks; by any name, they’re bad news. False promises of quick and painless riches are easier to fall for when an investment can be made with so little money up front. An investor might think, "How risky could it be?"
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