A penny stock generally sells for a low initial price, pays regular dividends, and provides consistent growth in the stock's value.

Question

Quizplus · Accepted Answer

Penny stocks are generally known for their high risk and volatility. They typically trade at low prices and are often issued by companies with small market capitalization and limited financial resources. Penny stocks may pay little to no dividends and their prices can be highly unpredictable, making them a potentially risky investment.

A Penny Stock Generally Sells for a Low Initial Price