If you want to invest in a stock market, you will find that you will have to buy certain number of stocks and you will have to pay a lot of money if you want to buy best performing stocks. This situation creates problems for small investors and individuals who want to invest. Those who do not have money might consider investing in penny stocks. But the question is are penny stocks even legal? Well, just like the normal stocks penny stocks are also legitimate investments tools, however, these stocks are cheap and do not belong to well known companies. If you hear about penny stock scams, that’s similar to getting scammed on stock market. Just like in the stock market, some penny stocks are designed to cheat investors. Some of the common penny stock scam are short selling and dumping. The most important thing is to identify genuine penny stocks.
