Mika
VIP Contributor
Penny stocks provide opportunities for small investors or normal individuals who want to start investing but do not have a lot of money to start investing. However, not all penny stocks are winners, and not all of them are honest investments. But it is also true that some penny stocks have the potential to make you a lot of money. One big problem with penny stocks is that big investors can manipulate the market. These big investors buy up a lot of penny stocks, and when common people and small investors start buying these stocks as they see some big investors also buying. This activity increases price. And once this happens, big investors start selling. When they've sold everything they have, the price crashes, and regular investors are left with stocks that no one wants to buy.
