Basics
What is Penny Stock?
A very cheap stock, usually from a tiny or risky company
Full Explanation
Penny stocks trade for under $5 per share (often much less). They're extremely speculative, easy to manipulate, and most fail. They look cheap but can go to zero fast.
Pro Tip
Avoid penny stocks as a beginner. "It's only $0.10 a share" is not a reason to buy.
Related Basics Terms
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