Wall Street - Selling Penny Stocks

Step 1: Research the following topic and post a short (250-word) response to the questions on the discussion board.
In the vein of “Wolf of Wall Street”, what is wrong with selling penny stock to potential investors? If you have not seen the film, you can go here for a synopsis: http://en.wikipedia.org/wiki/The_Wolf_of_Wall_Street_%282013_film%29