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Tuesday, February 24, 2015 6:38:54 PM
This sounds scary to you, then this is exactly what you’re getting when you invest in penny stocks!
Penny stocks exist on a different market exchange that is mostly unregulated by the Securities and Exchange Commission (Known as the OTCBB and Pink Sheets). The chances of finding a legitimate penny stock are very low.
Here are the reasons to stay away from the Penny Stocks:
In penny stocks stock price can tank on a whim.
Those that bought into the hype will quickly lose their money as the upward stock momentum drops and the stock price heads south.
Penny stocks differ from the stocks on major exchanges in that they have little to no following at all. You almost never find a penny stock being talked about by the financial media.
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