Penny stocks are low-priced securities typically traded over-the-counter, with a price per share below $5.

These stocks are often from small companies, startups, or companies with financial troubles....

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Penny stocks have a high degree of volatility and can experience significant price swings in a short period.

Penny stocks are often subject to pump-and-dump schemes, where fraudsters artificially inflate the stock price before selling.

Penny stocks can offer potentially high returns but also come with high risks, making them unsuitable for many investors.

Investing in penny stocks requires due diligence and careful research to avoid falling prey to scams.

Penny stocks have a high degree of volatility and can experience significant price swings in a short period.

Investors should be cautious of penny stock promoters who promise quick profits or use high-pressure sales tactics.

Penny stocks may be more accessible to individual investors with limited capital than other types of stocks.

Some brokerage firms may restrict or discourage trading of penny stocks due to the high risk involved.

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