Investing is an easy way to grow wealth over time, but you need money to do it. Now the good news is that you don’t need a lot of money — you can start investing with $100, or even less if that’s all you’ve got. But if you don’t have a lot of money to buy stocks with, your choices may be limited.
For example, right now, Netflix (NASDAQ: NFLX) is trading for around $512 a share. But if you only have $100 to invest, you can’t swing a full share of Netflix.
It’s for this reason that people with limited funds tend to seek out penny stocks. Penny stocks trade for under $5 a share, and that price point tends to appeal to investors on a budget.