The
popularity of trading penny stocks has gone up in recent years but they still
have a bad reputation due to many market manipulators. Despite their popularity
there are still many misconceptions and myths circling them. Your only
obligation to your money as an investor is to get educated on every aspect of
the stocks you decide to buy.
The
reason companies issue stocks because they need to raise money. Some companies
do this in order to pay off a debt while others are newly founded or need
funding to release a new product. Any kind of investment is risky because you
never know all the factors that might influence the growth of a company.