Which of the following usually represents an unusually risky stocks?
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A. B. C. D.C
The answer is C. Penny stock.
Penny stocks are usually considered unusually risky stocks. These are stocks of small companies that trade at low prices, typically below $5 per share, and have a low market capitalization. Penny stocks are often issued by companies with limited operating histories or with a high degree of financial risk, making them a speculative investment.
In contrast, blue-chip stocks are the shares of large, well-established companies with a long track record of stability and profitability. They are considered less risky than penny stocks, as they are less volatile and more likely to weather economic downturns.
Growth stocks, on the other hand, are shares of companies that are expected to grow at a higher rate than the overall market. They are often in industries that are expanding rapidly, such as technology or healthcare. While growth stocks can be risky if the company fails to meet growth expectations, they are generally considered less risky than penny stocks.
In summary, while there is no guaranteed safe stock investment, penny stocks are usually considered the most risky due to their speculative nature and lack of financial history. Blue-chip stocks and growth stocks are generally considered less risky, but still carry some level of risk.