why buy penny stocks

Why Buy Penny Stocks?

Penny stocks are cheap but are they good investments? Why buy penny stocks? For that matter what is a penny stock? According to Investopedia:
A penny stock typically trades at a relatively low price and has a small market capitalization, usually outside of the major market exchanges. These stocks are generally considered highly speculative and high risk because of their lack of liquidity, large bid-ask spreads, small capitalization and limited following and disclosure. They often trade over the counter through the OTCBB and pink sheets.
So, why buy penny stocks? Most penny stocks deserve their low price but there are diamonds in […]

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