Many investors will be anxious but wary of the stock market, when it comes to investing large sums of money. Perhaps this is understandable, as many people have lost money in the stock market due to misplaced investments. In most cases, the two most appealing types of stocks that you may have seen would be penny stocks and growth stocks. Most novice investors will be inclined to invest in penny stocks or growth stocks as a result of this conception.

First of all, penny stocks are stocks with share values less than a dollar. Most penny stocks are not regulated by the Securities and Exchange Commissions (SEC) and as a result, penny stocks are usually not exchanged in classic stock exchange markets such as the NYSE or NASDAQ. In fact, penny stocks will be usually traded in Pink Sheets and these platforms will have a very low volumetric trading as compared to the regular stock markets. Hence, many people will end up with lots of penny stocks in their hands and as a result they won’t be able to sell their stocks when they need to. Of course, another important problem will be the fact that these companies which solicit penny stocks are not regulated by SEC and thus serious problems concerning the financial stability of these companies will usually not be made public. In fact, in many cases there will be severe disinformation concerning these stocks and as a result, many people will be negatively affected. In fact, penny stocks are forbidden to be solicited by standard stock exchange brokers due to these problems. Hence, a novice investor should definitely stay away from these penny stocks. 

However, if you are looking for a great and stable investment opportunity, then growth stocks will be the best way to go. Growth stocks are special stocks that usually have more than average return for the investment in the middle term. Growth stocks will usually have more than median average returns. In principle, growth stocks will bring you more than 10% in returns annually. However, not every growing company will have growth stocks and not every growth stock will belong to a growth company. 

In essence, if you are thinking of doing some investment in the stock market, then you should not think about investing in the penny stocks. As stated above, penny stocks are very dangerous for investors and even expert investors have problems investing in penny stocks. You will also have to make sure that you are wary of quick return investments, as it will usually become a disappointment. Investing in the stock market does not mean that you will make huge amounts of money immediately. In fact, just the opposite investing in the stock market must be viewed as a mid term to long term investment. You will need to be patient and diligent in your efforts as investing and being successful in your stock market investment. Try to get some advice from various websites that deal with stock market investment.