Several investors get attracted to penny stocks since these stocks are priced low. However, financial experts consider penny stocks as high risk investments. They can create enormous amount of wealth within short time and can also result in heavy losses within days. Penny stocks have the potential to get doubled or tripled within days or weeks. Apart from this, there are other risks involved including limited liquidity, high degree of volatility, lack of reporting and increased vulnerability to manipulation by management and market makers. Stocks trading on the Pink Sheets are least regulated and have no minimum accounting standards. Investors and share holders are not notified of any type of information including changing ownership of shares and other changes that can affect the financial viability of the company.

Due to these risks and high degree of fluctuations, penny stocks are ignored by large brokerage firms and stock brokers. Most times, information like current price and the number of shares traded are not made available to the public. Even the pink sheets are available only to brokerage firms. Hence, it is very difficult to get information on penny stocks. However, if you want to buy penny stocks, you can look into newsletter sites published by penny stock investors. There are also websites such as Yahoo Finance that help in finding penny stocks.