Stock investment means buying shares to own part of a company. Stocks provide capital to businesses and offer potential income and growth to investors, but they carry market risk. Diversification, time horizon, and informed planning help manage that risk.
Penny stocks - generally securities trading under $5 - are low-priced, often OTC-traded shares with high volatility, limited disclosure, and elevated risk. Use limit orders, small position sizes, and thorough research if you decide to trade them.
Understand common broker misconduct - unsuitability, overconcentration, churning, unauthorized trades, and misrepresentation - how the regulatory landscape has changed since 2020, how to spot red flags, and practical steps to report and seek recovery.