Penny stocks, or low-grade securities sold for less than $5 a share, are a high-risk investment alternative to traditional stock and bond trading. Penny stocks are generally investments in small companies, and present the high risk of loss, but also a higher yield if the underlying business succeds.

2. Get ready for risk

3. Assess your investing needs

4. Prepare yourself for loss

5. Look for company data

6. Review the company’s profitability

7. Consult the experts

8. Beware of penny stock scams

9. Create an investment account

10. Make your penny stock purchases

11. Monitor your investments

12. Keep investing

13. Thank You