The person who made the least buys the beer.
Penny stocks tend to be businesses operating out of peoples basements, companies about to go bust, and companies about as likely to make any money as trying to sell sand to the desert.
They are risky and usually go down in value, but I wouldn't call them "scams."
Some penny stocks go on to be worth a lot more.
You cant say penny stocks are scam but its bit risky to invest in it. Its just like gambling if you have a patience and long term perspective you can invest in it
They are always scams.
(If they had ANY real prospect of success, the Board would simply vote to "reverse split" the shares to the point they could maintain a value above $5 and get listed on a "real" exchange instead of just being OTC or Bulletin Board...)
It's not "or".
It's "and".
And the answer is yes.
