: These stocks are often "thinly traded," meaning there are few buyers and sellers. This makes it difficult to enter or exit a position at your desired price.
: Prices can swing wildly based on rumors or low-volume trades, often disconnected from the company’s actual business performance.
: Many penny stock companies are not required to file regular financial reports with the SEC, making it harder to verify their health. Penny Stocks 101: Complete Guide For Beginners
: Historically under $1, but major regulators and brokers now define them as stocks under $5.
