Why Penny Stocks Are So Dangerous

As more retail investors trade penny stocks, innocent traders may turn to victims. Penny stocks are more vulnerable to fraud and have a history of multi-million dollar scams. “I’m getting a lot of calls from investors who are duped and getting scammed by penny stock operators,” Jacob Zamansky, an investment fraud lawyer, told CNBC. Watch this video to learn more about how ultra-low-priced stocks inspired a new breed of investors, high-stakes gamblers, risk-taking fraudsters and enforcement crackdowns.

Chapters:
00:00 — Introduction
01:38 — $5 or less
04:27 — Scammers
08:44 — Enforcement

Produced and edited by: Andrea Miller
Animation: Andrea Schmitz, Jason Reginato
Supervising Producer: Lindsey Jacobson

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Why Penny Stocks Are So Dangerous