Penny Stocks Can Be Dangerous. Why Are So Many Investors Buying Them?

As more retail investors trade penny stocks, innocent traders may turn to victims. Penny stocks are more vulnerable to fraud and have a history of multi-million dollar scams. “I’m getting a lot of calls from investors who are duped and getting scammed by penny stock operators,” Jacob Zamansky, an investment fraud lawyer, told CNBC. Watch this video to learn more about how ultra-low-priced stocks inspired a new breed of investors, high-stakes gamblers, risk-taking fraudsters and enforcement crackdowns. Chapters: 00:00 — Introduction 01:38 — $5 or less 04:27 — Scammers 08:44 — Enforcement Produced and edited by: Andrea Miller Animation: Andrea Schmitz, Jason Reginato Supervising Producer: Lindsey Jacobson