‘Penny stocks’: Is it worth investing in such stocks which cost Dh1 or even lesser?

‘Penny stocks’: Is it worth investing in such stocks which cost Dh1 or even lesser?

Dubai: Because of the old adage “it takes money to make money”, many still think of investing and the stock market as an activity for the wealthy. But what if you could start investing with stocks that cost Dh1 or lesser even? This is where the concept of investing in penny stocks has become increasingly popular. Here we outweigh the perks, alongside key risks. “Briefly put, penny stocks are risky and there's not a lot of information available on most stocks that trade in such a manner,” said Brody Dunn, an investment manager at a UAE-based asset advisory firm. “These stocks truly can turn a small amount of capital into a huge sum of money pretty fast, but can just as quickly wipe that investment out. One needs to also look out for scams involving penny.” But the question remains as to why then are still so many making profits with penny stocks? Although penny stocks are high-risk securities with a small market capitalisation that trade for a relatively low share price, typically outside of the major market exchanges, in reality, many newbie investors still opt for such stocks in hopes of making quick profits. “Investors, however, continue to open