Penny stocks are not inherently scams, yet they often become a tool for unscrupulous individuals to deceive small investors. The essence of these scams typically involves inflated valuations. Scammers artificially inflate the value of penny stocks and give prices far exceeding their actual market worth. While the stock actually might worth a few cents, they trade for a couple of bucks. For small investors, the low price appears as an attractive proposition as they are unaware of the stocks being overvalued. Have you ever been a victim of penny stocks?
