Can you describe a Penny stock?

[Potuse]

A penny stock is a stock that has high level of risk and they are issued by companies that do not have records of stable financial history and they are often traded less than $5 per share . I would like members here to explain more about the penny stocks and how we can invest in it.

 

[Planbizzle]

A penny stock is a standard share of a tiny publicly traded corporation that markets for less than $1 per share. Because to their low liquidity, huge bid-ask spreads, and insufficient information, penny stocks are often thought of as dangerous investments.

 

[Kane]

Penny stocks are the stocks from little-known companies and companies that have low valued stocks. If you can identify the penny stocks that have the potential to go big in the future you can try investing.

 

[Laurentta]

Penny stocks are common shares of small public companies that trade for less than one dollar per stock. Penny stocks are usually those of less established companies and haven't proven they can endure and succeed.