Investing in penny stocks is not for the faint-hearted. Typically, stocks priced below $5 are defined as penny stocks - and the share prices of these companies are often extremely volatile, but they also provide shareholders with the potential to derive game-changing returns over time.
Several big tech companies, including Apple (AAPL) and Amazon (AMZN), were once penny stocks that have delivered market-thumping gains for long-term shareholders. However, early investors in these tech titans, too, had to endure multiple pullbacks of over 80% several times on the way to outsized returns.
