3 Top Stocks Under $5 to Buy Now
Normally, companies with share prices lower than $5 -- commonly called penny stocks -- wouldn't even be worth a glance. These types of equities tend to suffer from poor fundamentals, an exorbitant number of outstanding shares, and shaky management. Making matters worse, penny stocks also tend to sport low institutional ownership, a feature that often makes their share prices exceedingly volatile. There is a small handful of exceptions to this general rule of thumb, however.
Clinical or early commercial-stage biotechs frequently have share prices that qualify them as penny stocks. Nonetheless, growth-oriented investors shouldn't necessarily avoid this entire group of equities simply because of their low share prices.
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Source Fool.com
