Did you know, Canadian markets host several stocks under 10 cents? Market experts often call out penny stocks for their risky nature. However, investors are often on the lookout to reap solid returns from minimal investments.
Stocks trading under C$ 5 with small market caps are identified as penny stocks. In Canada, these stocks are primarily found on the Canadian Securities Exchange (CSE), TSX Venture Exchange (TSXV), and also on the Toronto Stock Exchange (TSX).
In this article, however, we will not explore the typical penny stocks. Instead, we will explore stocks that under a dime. Often, investors distribute their funds across various investment instruments purchasing shares, bonds, debentures, and exchange-traded funds (ETFs) to build a diversified portfolio. It minimizes the risk and also allows them to expand into sectors. But the basics of the equity market also tell us that there no such thing as a risk-free investment.