Why You Should Avoid Penny Stocks Like the Plague

We'd all love to get rich quick, right?

Unfortunately, it's not a very easy goal to attain -- though you'll occasionally run across come-ons from the penny stock world that would suggest otherwise. But no less an authority than the Securities and Exchange Commission (SEC) has warned: "Investors in penny stock should be prepared for the possibility that they may lose their whole investment."

Here's a look at what penny stocks are -- and why you should avoid them like the plague. And as a bonus, there's a quick look at how you can get rich, albeit in a more reasonable timeframe.

Continue reading

Source Fool.com