Penny stocks are stocks that are traded for very low prices, typically less than $5 per share. They are usually issued by small, thinly traded companies and are considered to be highly risky investments.
Penny stocks are often attractive to investors because they have the potential to generate large returns if the company's stock price rises significantly. However, they also carry a high level of risk, as these companies tend to be highly speculative and may have limited financial resources and a questionable track record.
It is important to be cautious when investing in penny stocks and to thoroughly research the company before buying its stock. It is also a good idea to diversify your portfolio to manage risk, rather than putting all of your money into penny stocks.
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