Everyone loves a bargain, and that\u2019s a big part of the appeal of penny stocks. These cheap stocks provide the opportunity for you to invest in a company at a bargain-basement price. If you choose the right stock, you could make a big profit.<\/p>
But with the potential for high rewards also comes a very high level of risk, so keep reading to find out all about the pros and cons of investing in penny stocks.<\/p>
Penny stocks are cheap shares of small companies. Also called micro-cap stocks, these companies are often newly listed, have a market cap of less than $300 million, and usually trade for less than $5.<\/p>
Penny stocks are commonly found across a variety of market sectors, and they\u2019re often highly speculative. For example, a penny stock could be a mining company exploring a new mineral deposit, a pharmaceutical company developing a new drug, or a tech firm launching a new gadget or technology.<\/p>
Investors are often attracted to penny stocks for their low prices and potential growth opportunities. But there are several risks involved with investing in penny stocks too, so it\u2019s essential to understand those risks before buying any cheap stocks.<\/p>
Keep in mind that penny stocks carry a high degree of risk and volatility. While these picks were active at the time of writing, investors should perform their own due diligence as market conditions and availability can shift quickly.<\/p>
| Penny stock<\/th> | Stock price<\/th> | Market cap<\/th> | YTD performance<\/th> | Buy on Questrade<\/th><\/tr><\/thead> |
|---|---|---|---|---|
| Plug Power (PLUG)<\/td> | \n $3.12\n |