Trading penny stocks with high potential for growth can be risky, as highlighted by the U.S. SEC. Penny stocks may not trade frequently, making it difficult to sell them and accurately price them. Investors should be prepared to potentially lose their entire investment.
Despite the risks, some investors are drawn to penny stocks due to their low prices. If you are considering investing in penny stocks, it is important to research companies where insiders are investing their own money. This indicates confidence in the stock’s potential.
One potential penny stock to consider is Aurora Innovation (AUR). Atossa Genetics (NASDAQ: ATOS) is another company worth exploring, with promising data from a Phase 2 study of its drug, (Z)-endoxifen, for breast cancer treatment. Funds like Millennium Management and Citadel Advisors have been increasing their stakes in ATOS.
It is important to note that InvestorPlace does not typically cover companies with a market cap below $100 million or low trading volume, as these are often targets for scams. Before investing in penny stocks, it is crucial to understand the risks involved.
Ian Cooper, a contributor to InvestorPlace, has been analyzing stocks and options for web-based advisories since 1999. Consider these factors before making any investment decisions.