These are companies trading for less than $5/share and on OTC exchanges. They are often volatile and illiquid.
We restrict some of our screeners from using Penny Stock like the Marcsten Large Cap. The unfortunate reality with penny stocks is that it’s often too challenging to enter positions in these illiquid stocks. Therefore, we determine it unrealistic for this service and although it would be nice to advertise higher potential gains, we opt to be straightforward and only include S&P 500 companies that are large enough to invest easily in.
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