Unusually Risky Stocks

C

Out of the options given, the answer that represents an unusually risky stock is option C, which is the Penny stock.

A penny stock is a stock of a small company that trades for less than $5 per share and is often traded on over-the-counter markets rather than on major exchanges. These types of stocks are considered high-risk investments because they typically lack the financial stability and liquidity of larger, more established companies.

Penny stocks often have limited trading volume, which can make it difficult to buy or sell shares quickly, and they may lack information about their financial performance or the underlying business. These factors can make it difficult for investors to make informed decisions about the company's future prospects and can increase the risk of investing in these types of stocks.

Blue-chip stocks, on the other hand, are stocks of large, well-established companies with a proven track record of financial stability and consistent earnings. These types of stocks are generally considered less risky than other stocks and are often sought after by investors looking for a steady, long-term investment.

Growth stocks, while typically more volatile than blue-chip stocks, are still considered less risky than penny stocks. Growth stocks are stocks of companies that are expected to grow at a faster rate than the overall market and have the potential for high returns. However, they are still subject to market fluctuations and may not be suitable for all investors.

In summary, penny stocks are typically considered an unusually risky stock due to their lack of financial stability, liquidity, and information, making them more volatile and harder to predict than blue-chip or growth stocks.