Skip to content

Why Large Investors Obey The $5 Stock Rule

Many firms instruct portfolio managers to avoid low-priced stocks because the SEC applies special rules to stocks under $5. There are some good reasons for that — many of which benefit you as an individual investor.

Today, I want to explain what prevents big investors from trading these stocks and how this restriction benefits you.

Check it out.

This post appeared first on Money & Markets, LLC.