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Investment
Penny Stock
Very cheap shares (usually under £1 or $5) of small companies that are often highly speculative.
Penny stocks are traded on smaller exchanges or over-the-counter. They are extremely risky because the companies are usually small, have little cash, and can be easily manipulated. Most professional investors avoid them.
They're the lottery tickets of the stock market — cheap to buy, but most of them go to zero.
Real world: Many new mining or biotech companies trade as penny stocks. They can suddenly jump 300% on good news — or crash 90% just as fast when things go wrong.
💡 Penny stocks can feel exciting, but they are one of the fastest ways to lose money in the stock market.