Instead of listening to the crowd, learn how penny stocks work and realize they’re not evil, they’re actually very logical and traceable if you understand the game.
So what are penny stocks?
Stocks trading for less than $5 per share, not on a national exchange are known as penny stocks. These highly volatile securities provide both risk and opportunity and have gotten a bad wrap because of manipulation in the past. Today more regulations are in place to protect investors, and with the right knowledge, penny stocks can be a great opportunity for beginners.
I created this infographic to provide a background on penny stocks and the risks and opportunities involved. Click the image below to view.
Armed with the right knowledge, investors with a keen eye for real value can always find opportunity. Penny stocks are one such place that companies who are vastly undervalued can be spotted. With volatility, comes both opportunity and always risk. So it’s important to be aware, do your own research and be cautious before any investing.