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Are Penny Stocks a Good Investment?

By Keith Noonan – Updated Sep 29, 2025 at 1:42PM | Fact-checked by Frank Bass

Key Points

  • Penny stocks are high-risk with prices under $5, often leading to investor losses.
  • Invest in larger firms with clear growth paths, avoiding speculative low-value stocks.
  • Explore alternatives like fractional shares in established companies to minimize risk.

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