Investing in the stock market is a great way to generate wealth, but it can be expensive. Individual stocks can cost hundreds or even thousands of dollars per share, and not everyone can afford to invest that much money.
Penny stocks have gained popularity as a way to invest inexpensively. These stocks trade for less than $5 per share, making them an attractive option for investors on a budget.
However, penny stocks can be incredibly risky. Generally, the companies that offer penny stocks are smaller businesses, which tend to be more volatile than larger corporations. It can be difficult to determine whether these companies are solid investments when they don’t have long track records, and penny stocks often experience extreme price swings.