InvestingDatabase.com » Stocks » Penny Stocks
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Description

A penny stock also known as nano caps, small caps or microcap stock is a low-priced security of a small company with a low market capitalization that is typically listed for below $5 per share. Penny stocks investing is tempting because of its low price and rapid growth potential which mislead investors. The Penny stocks are high risk investments that can be easily manipulated and promoted as part of illegal pump and dump schemes or other investment scams which are promoting hot penny stocks. Penny stock trading is usually limited with low liquidity and high bid/ask spread.

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