Penny stocks are ones that trade over-the-counter and are (generally) very small. For penny stocks, there is less oversight and regulation of their operations and investor communications.
Typically, the shares of these companies will trade at low share prices (sometimes pennies!), but this is not a defining feature. A company’s shares could trade for $100 per share and it could still be a penny stock.
Some individuals have benefited greatly from penny stock investments. But, this opportunity comes with a price. Compared to shares on major exchanges, penny stocks carry more risk because there is less regulatory oversight, the underlying companies are less established, and there is less liquidity to buy and sell shares.
At Q.ai, we never invest your money in penny stocks. Instead, we search for better opportunities to capture upside while limiting your risk.