What's NOT "100% Misleading FALSE" is virtually no volume even at .0002. Hence the repeated warnings against investing in "thinly traded stocks."
What Is Thinly Traded?
Thinly traded securities are those that cannot be easily sold or exchanged for cash without a significant change in price. Thinly traded securities are exchanged in low volumes and often have limited numbers of interested buyers and sellers, which can lead to volatile changes in price when a transaction does occur. These securities are also known as being illiquid.
Key Takeaways
Thinly traded refers to securities that trade with low volume, exhibiting increased volatility. Many thinly traded public companies trade on on over-the-counter exchanges. Thinly traded can be determined by low volume or wide bid-ask spreads. Thinly traded investments pose a greater level of risk compared to liquid investments.