Penny stocks are super high-risk investments that aren't suitable for all investors. Then practice what you've learned with our free stock market simulation.

Here are some penny stocks to keep an eye on:

Symbol Company
VTVT vTv Therapeutics Inc.
AXSM Axsome Therapeutics Inc.
ALQA Alliqua Biomedical Inc.
ADIL Adial Pharmaceuticals Inc.
BTAI BioXcel Therapeutics Inc.

Penny stocks can also be called micro-cap stocks. While the latter are categorized based on their   market capitalization, penny stocks are classified as such based on their price. A stock with a market cap between $50 and $300 million is generally considered a micro-cap. The SEC defines any stock under $5 as a penny stock.



Because these stocks are traded over-the-counter, there are a few added risks to consider.

They are not as liquid

Because there is a much more limited number of buyers and sellers in the OTCBB, penny stocks just aren’t as liquid. One way to remedy that is to sign up for a penny-stock service which will make finding trades much easier.

Less available information

There is much  less information  readily available for stocks traded OTC. It’s harder to make an informed decision about a company about which you know very little.


Penny stocks can be verily easily manipulated, sometimes illegally, to drive their prices up. These stocks attract many solicitors and scammers who trick unaware investors and make a lot of money doing so.


Penny stock market

Penny stocks’ low prices mean that they are super volatile investments. Just a small change in the stock price would have a huge effect overall. This is both the allure  and danger of penny stocks:  High Risk, High Return . A risk-taker would be enticed to buy a huge volume of shares of a cheap stock in hopes of winning big if that price goes up a bit. This is usually the plan when buying penny stocks. Investors will scoop up tens of thousands, hundreds of thousands, even millions of shares of a stock that sells for very little per share. The idea is to get in quick and cheap, and get out fast and flush.

Many OTCBB companies are working crazy hard to climb their way up to the Nasdaq and NYSE status. Some companies on the OTCBB might be good quality, but penny stocks are just very high-risk investments and they aren't suitable for all investors. If you can't resist the lure of these micro cap stocks, at least make sure you do extensive research.

Where to Buy Penny Stocks

Penny stocks are often not traded on any major stock exchanges. Though the NYSE, NASDAQ and AMEX are home to some of the more established penny stock companies , they’re usually traded  over-the-counter  on the OTC Bulletin Board (OTCBB) and pink sheets.


Penny Stock Software and Tools

Here are some super helpful tools to use when buying penny stocks:

Penny Stock Tips

  1. Ignore penny stock success stories that are touted on social media websites.
  2. Sell quickly .
  3. Focus only on penny stocks with high volume (at least 100,000 shares a day)
  4. Don’t fall in love with a stock!!!

Important Reminder!

The Motley Fool Stock Advisor ranks as our #1 Best Investment Newsletter for the third year in a row.

Their stock recommendations continue to beat all of the other newsletters that we follow and they maintain a very high accuracy of their picks. Their 24 stock picks from 2018 have outperformed the market by an average of 44% as of October 12, 2019. Read that again. I didn’t say their stock picks are up an average of 44%, I said they have BEAT THE MARKET by 44%.

No other newsletter comes close to that. You may have seen the Motley Fool’ advertisements that their picks are up 367% compared to the market’s 80%. Is The Motley Fool’s Stock Advisor really as good as they claim?

Our results, at least since January 2016, suggest YES. You can now get their next stock picks in real-time for ONLY $19. You will also receive their list of the TOP 10 Stocks to Buy Right Now.  This special pricing is for NEW customers only and you must click on this link to get the special price..

Get the Motley Fool's Next Stock Picks for $19

P.S. this offer is still backed by their 30-day money back guarantee