Forget Penny Stocks: Here's a Better Investment if You're Short on Cash

Investing is an easy way to grow wealth over time, but you need money to do it. Now the good news is that you don't need a lot of money -- you can start investing with $100, or even less if that's all you've got. But if you don't have a lot of money to buy stocks with, your choices may be limited.

For example, right now, Netflix (NASDAQ: NFLX) is trading for around $512 a share. But if you only have $100 to invest, you can't swing a full share of Netflix.

It's for this reason that people with limited funds tend to seek out penny stocks. Penny stocks trade for under $5 a share, and that price point tends to appeal to investors on a budget.

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Source Fool.com