Buying penny stocks is gambling. Penny stocks are cheap for a reason. They are usually not earning money and are on the verge of bankruptcy.
When you hold quality stocks over a period of time, the prices will go up for a real reason; the companies are earning money every year and becoming more valuable. This is not gambling; you are owner of a money making business. It takes time for that business to earn money.
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Penny stocks, also known as cent stocks in some countries, are common shares of small public companies that trade at low prices per share. In the United States, the SEC defines a penny stock as a security that trades below $5 per share, is not listed on a national exchange, and fails to meet other specific criteria
Start by reading the SEC warning about penny stocks. Link below. Forget about giving him investment advice because you appear to have much to learn yourself.
Take him to an 18+ strip club and give him 100 $1 bills.
Don't touch the penny stocks !
dont bother
Give him say 250 and tell him to have a party.
He will have fun and you will lose less money.
My younger brother is turning 18 pretty soon and I was thinking about giving him a grand or so to play with some penny stocks. Given the high risk nature I'm sure he'll lose it all in a week, but as far as 'real stock' is concerned, I can't imagine a grand will do much of anything. Any suggestions? Thank you
