Why do people avoid penny stocks?

[Pradeep]

Penny stocks are not reliable and chances for the business to crash is high.

Since prices are less it’s more volatile.

Penny stocks can be manipulated.

[Hema]

There is a lack of transparency.

Speculation versus investment.

These companies fluctuate wildly in very short periods of time.

[Elanthiraiyan]

<span style=”color: #222222; font-family: arial, sans-serif;”>Penny stock companies are speculative. They are thinly traded. </span>

<span style=”color: #222222; font-family: arial, sans-serif;”>I</span><span style=”color: #222222; font-family: arial, sans-serif;”>nvestors in penny stocks </span><span style=”color: #222222; font-family: arial, sans-serif;”>should be prepared for the possibility that they may lose their whole investment so people avoid penny stock.</span>

 

[Vishal Rath]

Penny stocks are very risky. There are many scams also, so it is avoided.

http://www.investopedia.com/updates/penny-stocks-risks-rewards/

 

[Vijayavani]

No idea.

[Author]

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