Penny stocks are shares in small public companies with a low market capitalization and limited liquidity. This makes them more volatile than stocks from larger, more established companies. However, penny stocks often belong to evolving companies with high growth potential. If a penny stock company succeeds, the value of its shares can skyrocket, resulting in substantial returns for investors.
Furthermore, because of their low prices, investors with a high risk tolerance can acquire a large number of shares at a low cost. Here are two penny stocks that Wall Street believes are strong buys, with the potential to increase by more than 400% over the next 12 months.
