The S&P 500 has averaged a return of over 10.5% annually since 1957, with $100 invested then worth $97,000 in August 2025. Stocks can build long-term wealth, but certain types may be risky, so understanding investments is crucial. Meme stocks, popularized via social media, can be volatile and risky due to online influence.

GameStop (GME) is a well-known meme stock that surged to $500 per share in January 2021 then fell to $10 by 2024. Avoiding individual stocks and investing in index funds or ETFs can minimize risk and provide market-wide exposure. Penny stocks trade under $5 and offer low entry barriers but carry higher risks.

Investors should consider ETFs for diversified market exposure. Expert advice recommends avoiding single stocks and understanding investments for financial success. Penny stocks offer low-cost investments but may be harder to sell due to low demand. Scams exist in the industry, so caution and research are essential.

Read more at Yahoo Finance: 4 Types of Stocks To Avoid