What are the risks associated with investing in low-priced, illiquid stocks?

Please review Interactive Brokers’ Penny Stock Trading Risk Disclosure and Risk Disclosure Regarding Ramp and Dump Scams for information on risks associated with trading penny stocks and other low-priced, illiquid stocks.  Further information concerning these products and the risks involved in trading them is available on the SEC's website.

Please Note

  • Interactive Brokers does not provide investment or trading advice, and so cannot advise you about what products you should or should not trade.
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What should I do if I believe I have traded in a "Ramp and Dump" or “Pump and Dump” scheme?
Where can I find more information about the risks of investment scams, such as “Ramp and Dump� or “Pump and Dump� scams?
Why do I see a warning about illiquid stocks when entering trades, and can it be disabled?