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Many times, penny stocks trade only a few thousand shares a day. Because of a lack of liquidity, there will be a big bid-to-ask spread. Investors may have a hard time unloading shares when they Inexperienced investors buy up the shares, pumping the price. Once the stock has reached a certain inflated price, the bad guys sell or dump, the stock at a huge profit. In turn, investors are left high and dry. These pump-and-dump schemes are often distributed through free penny stock newsletters,

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Shanghai Composite Today: Get all information on the Shanghai Composite Index including historical chart, news and constituents.

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