Penny stocks are highly speculative. Most likely you will suffer a capital loss. Penny stocks are often less than a dollar for good reason. The earnings are often low and have high levels of debt. Brokers will say yes to any stock. You are better off with larger cap stocks.

Brokers may not be terribly enthusiastic in handling penny stocks - they may set a minimum purchase of a block of 100k shares (that would be $1000)

Obviously you would be sitting with 100,000 penny shares. If they go up in value, you've made a profit on paper, because you may find someone only wants to buy (say) 10,000 shares. So, you'd be sitting with 90,000 shares which are pretty much impossible to sell.

Obviously, these shares are penny-shares for a reason. If they drop in value - you lose everything.

Personally, I would advise you to steer well clear of these. They can be a profit-making venture, but you need a lot of experience to handle your transactions. This sort of game is not for the newbie.

What is a penny stock?

They are shares in un-quoted, un-regulated, private companies. They usualy have no reliable financials (if any), one product or potential product, very limited board structure (maybe CEO and Fin. Director).

Therefore no institutional following (no research), very illiquid, vulnerable to market manipulation (pumo & dump).

Now on the plus side, er.....

You buy. They go down. You panic and sell out. Repeat.