Penny stocks are risky. That’s why we attach a warning to the tail-end of penny stock articles. It’s also why the SEC warns of their dangers. “Penny stocks may trade infrequently — which means that it may be difficult to sell penny stock shares once you have them. Because it may also be difficult to find quotations for penny stocks, they may be impossible to accurately price. Investors in penny stock should be prepared for the possibility that they may lose their whole investment.” In short, pay close atten ...