Penny stocks are stocks that have fallen below the $5 per share level, and are often companies that have seen significant selling pressure form. Many such companies are beaten down by the market, heavily shorted, at higher risk of bankruptcy and are investments that are inherently much more risky than the average stock. However, alongside this higher risk comes higher potential returns. Investors willing to put capital to work in such names can generate outsized returns relative to the market. Of course, in ...