Published on 1 Aug 2022 on Insider Monkey via Yahoo Finance

10 Best Penny Stocks to Buy and Hold According to Reddit

In this article, we will discuss the 10 best penny stocks to buy and hold according to Reddit. If you want to skip our discussion on the earnings potential of penny stocks, go directly to 5 Best Penny Stocks to Buy and Hold According to Reddit.

Penny stocks are subject to fewer regulations for the publication of financial results since they are traded on the loosely regulated over-the-counter markets. However, the lack of regulation has not deterred investors from exploring these stocks. According to figures from the Financial Industry Regulatory Authority, OTC transactions grew more than 2000% from 2020 to 1.9 trillion in April 2021.

To control manipulation in the OTC markets, the SEC introduced several regulations last year. The regulations were intended to ensure that investors find it challenging to trade stock of OTC enterprises that have discontinued disclosing their financial information or have “gone dark.” Thus, it would be more difficult for con artists to exploit these stocks in scams that target new investors.