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What are the disadvantages of buying penny stocks?

Answer:
The main disadvantage of buying penny stocks is that the value of the stocks fluctuate enormously on a day to day basis. Penny stocks may also be very hard to sell once you own them. To benefit from penny stocks, one must be very knowledgeable and experienced with buying and selling stocks, so penny stocks are not for first time buyers.
First answer by Answers Publishing Network. Last edit by Answers Publishing Network. Contributor trust: 102 [recommend contributor recommended]. Question popularity: 1 [recommend question].

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