Penny stocks are low-priced shares. They are often highly speculative.
**Characteristics of penny stocks**
– Cheap entry points.
– Hard to buy madison square garden entertainment shares and sell quickly.
– Driven by hype.
**Examples**
– Huge potential but risky outcomes.
– Mining or energy exploration companies.
– Failed companies attempting comebacks.
**Benefits**
– Potential for massive gains.
– Rare but possible.
**Risks**
– Poor financials and high debt.
– Traders manipulate prices.
– Little regulation.
**Conclusion**
Penny stocks are a gamble more than an investment. While some become future giants, most end in losses.
