3637: What is a Penny Stock? by Jeff Rose of Good Financial Cents on Stock Market Education

Get the 200+ Page Optimal Living Daily Workbook (PDF) — Free. Want to turn today’s episode into an actionable plan? Join the Optimal Living Weekly newsletter and I’ll send you our 200-page digital workbook immediately. It’s packed with the best takeaways from the show, formatted for easy reading and implementation at home. Get your free PDF workbook here: ⁠⁠https://oldpodcast.eo.page/join⁠ Discover all of the podcasts in our network, search for specific episodes, get the Optimal Living Daily workbook, and learn more at: OLDPodcast.com. Episode 3637: Jeff Rose explains what penny stocks really are, why their low price can be misleading, and how their lack of liquidity and reporting requirements make them especially risky. He also breaks down common "pump and dump" scams so you can recognize the warning signs and make more informed investing decisions. Read along with the original article(s) here: https://www.goodfinancialcents.com/what-is-a-penny-stock-scam-pump-and-dump/ Quotes to ponder: "Every time this occurs I always sigh to myself and think, “Sure it is”." "What makes penny stocks so risky is their lack of liquidity." “People who responded to the ‘pump and dump’ scam lost 8% of their investment in two days. Conversely, the spammers who buy low-priced stock before sending the e-mails, typically see a return of between 4.9% and 6% when they sell.” Episode references: OTC Markets Group (OTCBB/Pink Sheets information): https://www.otcmarkets.com/ U.S. Geological Survey: https://www.usgs.gov/ Learn more about your ad choices. Visit megaphone.fm/adchoices