If you're not ready to completely part with your funds, and any loss of your initial capital would cause a major financial crisis, it would be advisable for you to stay out of the markets. If you have been considering whether or not to buy penny shares, it would be advisable to do a reasonable amount of research before “jumping in with both feet”, so to speak. Penny shares are also known as “micro-cap shares” due to their relatively minuscule share value. Chances are, your source is wrong or you’ll make the cut belatedly. Some have argued that the share price should be $1.00 or less to be considered a true penny stock, but for the purposes of keeping things simple, we will keep the $5.00-or-under definition. The old adage is true, “Never risk more than you're willing to lose”. When they listen and put some money in that penny stock, they find their investment crashing and wonder what went wrong. In all business there are a number of frauds who persuade people by giving fake information

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