Published on 19 Feb 2023 on InvestorPlace via Yahoo Finance
It’s super-easy to look for large-cap stocks – those names that seemingly everyone knows, or FAANG stocks that get plenty of attention from both analysts and retail investors. But if you want to stand out from the crowd and find some bargains with some penny stocks, then this one’s for you.
Penny stocks don’t necessarily cost a penny – I don’t think I would be that interested in buying them if they only cost a copper coin. But a true penny stock is anything that’s priced at less than $5 per share. That means that you can pick up plenty of shares of any of these names, for not very much money.
Of course, there are some caveats. Penny stocks tend to be more volatile than more so-called “established” stocks, so you have to be comfortable with your risk tolerance. Many times penny stocks are either in their early stages, which means they may not be even making a profit yet. Or they could be companies that fell on hard times and are looking to bounce back.