Penny stocks tend to stay under the radar because usually they don’t represent much interest to anyone. With the OTC market being unregulated, sometimes the information that these penny stocks disclosed can be misleading, and sometimes it can be false altogether, used to scam people from thousands of dollars. This is why investing in penny stocks is considered very risky, although the rewards can be equally high. As penny stocks are trading at very low price levels, even an insignificant increase in their price translates in double- or triple-digit percentage growth.
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