Investing in Penny Stocks: What Are The Risk?

[Nomad]

Penny stocks are low-cost shares of small companies. These stocks are not traded in the main stock market but over the counter market. Since these are low priced stocks, a lot of beginners are attracted. However, you need to understand they are extremely volatile and easily manipulated. Whales often target penny stocks for pump and dump. Losses are common for small investors who join the rally late.

 

[Starmix]

That's crucial to invest in Penny Stocks for it's volatile and risk is inevitable. I will not join in that kind investment. It's scary.