6 Types of Investments You Should Avoid
Investing can be a great way to grow your money over time. However, there are also some investments that are best avoided. These investments can be risky, illiquid, or simply not worth the investment. Here are six types of investments you should avoid: 1. Penny stocks Penny stocks are shares of companies that trade for less than $5 per share. These stocks are often very risky because the companies are small and have limited financial resources. This means that they are more likely to go bankrupt or experience financial difficulties. Additionally, penny stocks are often illiquid, meaning that it can be difficult to buy and sell them. This can make it difficult to get out of an investment if you need to. 2. Complex financial products There are a number of complex financial products on the market, such as structured products and derivatives. These products can be difficult to understand and can be very risky. If you are not sure how a financial product works, it is best to avoid it. ...