What is Penny stock?
Stocks, funds & commoditiesA very low-priced, often small and thinly traded stock. Prices can swing wildly and are easier to manipulate.
Think of it like: A lottery ticket dressed as an investment.
Real example: In the US, the SEC treats most shares trading under $5 as penny stocks; small amounts of money can make them jump or crash.
Lesson: Spot an investment scam