Rennova Health Inc (RNVA)

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Buyer Beware. One of the very best ways to lose all your money in the stock market is to try to trade penny stocks, low-priced shares of very small companies that do not trade on a national securities exchange.

Among the venues where penny stocks trade, the OTC (over-the-counter) Bulletin Board has no minimum listing standards; companies need only find a sponsoring broker-dealer. By contrast, companies that wish to list on the NASDAQ or the New York Stock Exchange need to produce offering documents that are vetted by the Securities and Exchange Commission (SEC). Another venue for penny stocks, the OTC Pink marketplace, has neither listing standards, nor even any reporting requirements!

Because they are so lightly regulated, penny stocks attract fraudsters, stock promoters, and market manipulators. The SEC does not mince words in describing the risks of speculating in penny stocks, warning (emphasis in the original text):

Consequently, investors in penny stocks should be prepared for the possibility that they may lose their whole investment (or an amount in excess of their investment if they purchased penny stocks on margin).