Plenty of investors get lured into considering penny stocks, partly due to a perceived discount and partly by the potential for outsized gains. While enticing, these companies are more often found to be bad investments due to their increased risk, lower regulatory scrutiny, and reputation of being run by fraudsters or market manipulators.
Individual investors are much better served by sticking with regulated securities, owning what they understand. Rather than fool around with what often turn out to be lottery tickets masquerading as companies, investors would be wise to put their hard-earned money into quality businesses with actual track records of success.
American Tower (NYSE: AMT) and Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) are better bets than penny stocks and have shown themselves to be quality stocks worth looking into. Let's find out a bit more about them.
For further details see:
Forget Penny Stocks! Buy These High-Quality Stocks Instead