Behind the Money
Are penny stocks getting the memestock treatment?
Mar 13, 2024
Exploring the rise of penny stocks fueled by retail investors in 2021, covered including the surge in trading volume and accessibility through mainstream brokers, the risky reputation of penny stock trading, share price dilution, and the potential future regulations for trading penny stocks.
17:07
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Quick takeaways
- Penny stocks are attracting retail investors for quick profits but carry high risks of delisting due to volatility.
- Market observers note limited impact of penny stocks on broader market despite Nasdaq's scrutiny for sub-dollar stocks.
Deep dives
Penny Stocks Boom Among Retail Investors
Retail investors are fueling a surge in trading penny stocks, which are companies trading at less than a dollar per share. The number of penny stock companies on public exchanges has quadrupled in the last year. These stocks, often neglected by analysts, are attracting attention with surging trading volumes, sometimes surpassing big players like Tesla.
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