InvestingTips

Penny stocks, characterized by their low share prices, may seem attractive due to their apparent affordability. However, these stocks can be risky investments, often leading to unexpected losses for investors. In this discussion, we delve into what defines a penny stock, the associated risks, and the myths that can mislead potential investors.What Constitutes a Penny Stock?Penny stocks typically trade at prices below $5 per share, with a common reference being those below a dollar. These stocks are frequently not listed on major exchanges like the NYSE or Nasdaq, instead finding a place on the pink sheets or the over-the-counter (OTC) market. The lack of listing on major exchanges contribute...