Many investors enjoy buying penny stocks because they offer a chance to own a lot of shares for relatively little money. If the stocks move up literally by just pennies, it could translate into huge profits.
The Securities & Exchange Commission warns investors of the perils of penny stocks. It considers any stock trading for less than $5 a share to be a penny stock. The regulator cautions, “Investors in penny stock should be prepared for the possibility that they may lose their whole investment.”
Yet not every low-priced stock is a scam. Hidden gems with solid long-term potential abound. The following three companies are what I’d consider to be the smartest penny stocks you can buy right now.
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