They're designed to be a legal scam. You only make real money when you're on the inside and know what they're going to pump and dump next.
If you are asking about penny stocks, then I am assuming you do not know much about the stock market. If you insist on playing with stocks, I'd advise you to just directly buy shares in the companies making up the S&P. You'll then be doing the same thing many mutual funds do, but without the extra fees.
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