Why Do People Trade Penny Stocks?

Why do people trade penny stocks, despite their enormous risk? As the saying goes, “the higher the risk, the higher the potential returns.” So if you’re comfortable with the risk versus return trade-off, and understand that you could lose your money, penny stocks could play a role in your portfolio.

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IPOs for Everyone

In recent years, several high-profile companies have gone public, meaning they’ve begun selling stock openly to investors. Facebook went public in 2012, and Twitter followed suit in 2013. Both initial…

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