What is a penny stock? Top 5 things to know
A penny stock is a small company's stock that typically trades for less than $5 per share.
Low Price
Usually priced under $5 per share, making them accessible for small investors.
High Risk
High volatility and potential for significant price swings due to low liquidity.
Limited Information
Often lack detailed financial information, making analysis difficult.
Over-the-Counter (OTC) Trading
Commonly traded on OTC markets instead of major exchanges.
Potential for High Reward
Can offer substantial returns if the company grows, but also a high risk of loss.
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