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Why penny stocks are so risky

  • 📰 CNBC
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  • 2 min. at publisher
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As more retail investors trade penny stocks, innocent traders could be become victims. These equities are more vulnerable to fraud and have a history of multimillion-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 penny stocks inspired a new breed of investors, high-stakes gamblers, risk-taking fraudsters and enforcement crackdowns.

As more retail investors trade penny stocks, innocent traders could be become victims. These equities are more vulnerable to fraud and have a history of multimillion-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 penny stocks inspired a new breed of investors, high-stakes gamblers, risk-taking fraudsters and enforcement crackdowns.

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