Investing in penny stocks can be rewarding, but it comes with high risks. The U.S. Securities and Exchange Commission warns that penny stocks may trade infrequently, making it difficult to sell them. It’s also important to not put all your money into one stock and to only invest what you can afford to lose.
One top penny stock to consider is SoundHound AI (SOUN). Another potential pick is Unicycive Therapeutics (UNCY), which is currently trading at $1.12 and has a buy rating from Piper Jaffray with a $9 price target. The company’s lead asset, OLC, is in late-stage development for hyperphosphatemia, a condition that affects chronic kidney disease patients.
It’s important to note that investing in penny stocks and low-volume stocks can be risky, as they are often targeted by scam artists and market manipulators. It’s crucial to do thorough research before investing in any stock.
Overall, understanding the risks involved and being cautious with your investments can lead to potential gains in the penny stock market.