If you are looking for hot stock tips, you probably come across opportunities to invest many penny stock. They are abundant, especially online. They tout the stock really cheap and how you can get the ground floor.
Historically, many of the fraud has come from penny stock investments. They're hard to catch or even see the radar because they are so small. The SEC is tough enough time looking at the big blue chips, let alone a small IPO, No In addition, many of them are based outside the U.S., which helps them to fly under the radar.
All I have to say here is be careful about investing penny stock. The only smart way to do this is if you know the person or company can get to their activities and see for yourself that this is a legitimate business.
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