Penny stocks are low-priced shares of small companies, typically traded over-the-counter (OTC) rather than on an exchange. They can be highly volatile and risky, but also potentially rewarding for investors who are willing to take on more risk.
There are a number of reasons why someone might want to buy and sell penny stocks. Some investors are attracted to the potential for high returns, while others see them as a way to diversify their portfolio or hedge against inflation. Penny stocks can also be a good way to learn about the stock market and how to trade stocks.