Final answer:
The statement that a penny stock is a guarantee to increase wealth in the future is false. Accurate prediction of stock rises is challenging due to the unpredictability of stock prices and competition among investors. Long-term savings and investment are more reliable strategies for wealth accumulation.
Step-by-step explanation:
The belief that a penny stock is a guarantee to increase wealth in the future is false. It is challenging for even seasoned financial professionals to predict stock performance and identify which stock prices will rise. The Random Walk Theory suggests that stock prices move unpredictably and are influenced by expectations of future performance. Therefore, a more reliable method to accumulate financial wealth involves additional education, training after high school, and starting to save money early.
Investors trying to get rich quickly by picking potential high-profit companies face competition from many other investors with the same goal. This competition means that any potential growth may already be factored into the stock's current high price. Accumulation of wealth is more realistically achieved through long-term investment and savings strategies, as opposed to the risky and unpredictable nature of penny stocks.