Penny stocks are stocks with low price which are not quoted on the normal stock markets. There are many ways to buy the best penny stocks as well as many ways to choose penny stocks. When buying penny stocks, you must do as much research as you can on the stock you are interested in first of all. Try and contact the company and obtain any literature on the company that is available. You should also do an extensive search online for the company that is issuing the penny stock. In addition, you should consult with your broker for advice. Your colleagues and friends may also have some recommendations which you can take heed of. Even after all this, you should remember that penny stocks are higher risk than normal market stocks.