When you are looking to buy penny stocks you need to do a lot of research. There are literally hundreds of good information resources online where you can find information about penny stocks, also referred to as OTC stocks (OTC stands for over the counter).
The return on your investment for this type of investment can be extremely high, but investors beware, so can the losses be drastic. This is a volatile investment vehicle for investors that wish to expand their investment horizons beyond the scope of mainstream stocks and mutual funds.
When investing in penny stocks it is very important to do deep research on the reality of the actual company where you are investing. This can be more important than generic market trends, which is not the case when investing in traditional blue chip companies.