What Are Penny Stocks?
Penny stocks, also known as micro-cap stocks, trade under $5 per share. Their price fluctuations tend to increase and decrease very rapidly. The high volatility, cheap price, and random spikes of these stocks may cause traders to become fixated on the reward, causing a get rich quick mentality which can be devastating to the trader because of the high risk these stocks bring with them.
Why Are Penny Stocks Risky Investments? (more…)