Penny stocks are like the baby brother of regular stocks. They are very small, just like how a baby is tiny compared to an adult. When you buy a regular stock, it's like buying a big toy, but when you buy a penny stock, it's like buying a small toy.
Penny stocks are called penny stocks because they usually cost less than a dollar. Sometimes they can be really cheap, like just a few cents. This means they are great for people who don't have a lot of money to invest but want to get started in the stock market.
However, penny stocks can be riskier than regular stocks. They are not always from big companies you have heard of and they might not be very stable. It's like playing with a toy that might break easily. So if you want to invest in penny stocks, you need to do a lot of research to make sure you are buying from a good company.
In general, penny stocks can be a fun way to get started in investing, but you need to be careful and do your homework before you buy.