Penny stocks are not traded on the major exchange. Any stock traded for less than $5 on the main Nasdaq exchange is called a ‘Penny stock’ which is a small company with high liquidity and speculative shares.

They are in reality low-priced, small-cap stocks. They, in fact, cost more than just a penny. Anything under $5 on the big exchange is called a Penny stock. Most investors think that penny stocks are like the wild west of the Wall Street. It is an untamed world, and it is detached from the glitz and media coverage. The gains and losses are impressive in the stock world, but no one hears about them elsewhere.

However, penny stocks also have a bad reputation for being filled with corruption and scams.

How to buy penny stocks
You can buy a penny stock from a normal stockbroker. Cheap stocks on NYSE and NASDAQ exchanges are not regarded as ‘penny stocks’ but still gain a lot of benefit from penny stocks without risk. These exchanges follow a strict listing requirement, and they are more reliable. There are listed on services like OTCBB and Pink Sheets.

Over-the-Counter Bulletin Board, or OTCBB, is a quotation. Unlike quotation publisher, Pink Sheets, OTCBB ensures that it maintains the listing requirements (these are less stringent than those at the exchange). For this reason, OTCBB has a little bit of added legitimacy.

Pink Sheets is a system that provides investors with a quotation of stocks that are registered with it. They are not registered with the SEC and does not enforce any listing. Pink Sheets are risky.

Payoff
With the risk involved, why would you want to invest here – since it is volatile? The violent fluctuation will turn the 0.8 stock to $8 in a few weeks. There are a few find success stories and mint money while they play with pennies. Companies that jump from a penny stock to power stock is rare. If you find them, they pay out in spades. Numbers may vary, but the gains are more than 1000 times in a few weeks. The real trick is finding the right stock.

The Risks
Even the legitimate penny stocks are risky. The reason for the risks is the low liquidity and poor standards. Low liquidity plagues penny stocks daily. It is a niche area, and even low trade can have a great impact on the stock price. According to Securities and Exchange Commission (SEC), penny stocks trade infrequently; it gets difficult to sell penny stock shares once you own them. There are no quotations. Hence accurate pricing is impossible. So, here’s a list of the top 10 penny stocks for you to get acquainted with it.

• The top 10 penny stocks for 2017
  Aerotech, a defense design, manufacturing company is going to capitalize on the drone and virtual reality market. The stock, which has been one of the hottest top 10 penny stocks this year, rallied in this quarter to an all-time high of $4.20 with a correction to $3.66. It is considered a hot stock.
• Mueller Water Products, Inc. a leading manufacturer of fire hydrants in the U.S. it has sold over 3 million fire hydrants, one fire hydrant costs $1000.Also, it is considered to be one of the top 10 penny stocks of the year. The hydrants may last but not the gaskets and seals. Also, there are over 20 million fire hydrants in the US. T
• Valeant Pharmaceuticals Intl Inc. faced many problems and saw the stock reduce by almost 82% over the last 12 months. Valeant Pharmaceuticals Intl is one of the best penny stocks to invest in.
• Twitter– Twitter is one of the most popular penny stocks and is one of the top 10 penny stocks. The reason behind Twitter’s growth and expansion is greater monetization. The increase in revenue is due to the users being charged half of those logged in users are charged.
• Alibaba Group Holdings- It’s one of the best cheap stocks. It is expected to grow in the next two years; Alibaba is also expected to grow about 30% in sales.
• Five Below Inc. saw a 25% growth this year. With over 400 stores, five is a regional brand with a huge potential to expand inside out. The company will be operating over 2,000 stores in and around California, Southern Florida Ohio, and Southern Texas markets.
  Celgene Corporation, last year it made $9.2 billion in revenue. A best-selling drug, it is expected to experience 20% to 18% growth in the next two years. Also, it is on the brink of making over $21 billion revenue by 2020.
• John Bean Technologies Corp supplies air transport and food processing industries with materials and solutions. Cheap fuel makes people prefer to travel by air. Being a big business this, company designs, manufactures and services airport ground support.
• Northern Dynasty Minerals Ltd. specializes in mineral exploration. The new administration has set up a pro-mining agenda.
  Hecla Mining Company founded 1891 specialist in precious minerals mining and has reported a record silver reserve for this year making it 10 years in a row.