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Before Investing in Penny Stocks


Caution Investing in Penny Stocks



Penny stocks can be a danger to investors especially when the company issues a reverse stock split.


If you are going to "play" the Penny stocks, you should be trading the majority of them and not investing in them. It's legalized gambling with the odds favoring the "house". Virtually all of them are NOT suitable for long-term investments, but can be profitable if traded.



I decided to do some research to find out what all the fuss was about penny stocks. What are the risks and benefits involved with investing in these types of stocks?


Stock advisory services, whether online or in print, must disclose their relationship with the stock they are promoting.