Buying | Penny Stocks 101

: These stocks are often "thinly traded," meaning there are few buyers and sellers. This makes it difficult to enter or exit a position at your desired price.

Penny stocks are low-priced shares of small companies, typically trading for . While they offer the potential for explosive returns—where a small price increase represents a massive percentage gain—they are among the most speculative and high-risk investments available. Core Characteristics buying penny stocks 101

: Prices can swing wildly based on rumors or low-volume trades, often disconnected from the company’s actual business performance. : These stocks are often "thinly traded," meaning