This story was originally published here.
Penny stocks often get a bad rap for their low trading price, but many investors will tell you that they are actually some of the top stocks to buy. Although companies that trade at a low price range are often a victim of bad business decisions, the affordability of these stocks makes them an appealing buy for investing newbies.
The uncertainty of the pandemic has shed light on the importance of earning a passive income. Investing in the stock market has long been proven to be one of the best ways to do this. This increased awareness has resulted in a surge in the number of young retail traders who are looking to dip their toes into the markets, often with very little capital.
While penny stocks have their fair share of bad eggs, some companies that are trading under $5 do show some solid growth prospects. With a good amount of research and some luck, there are some excellent gains to be made with penny stocks.
Here are seven tops stocks to buy…
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