Penny stocks and blue-chip stocks are both types of stocks, but they have some key differences. Blue-chip stocks are shares of large, well-established companies that have a long history of profitability and stability. These stocks are often considered to be less risky than penny stocks and have a higher level of liquidity. On the other hand, penny stocks are shares of smaller, less well-known companies that trade at a lower price point. They are considered to be more risky and have a higher potential for volatility. Additionally, penny stocks may not be traded on a major exchange and may not have the same level of regulation or oversight as blue-chip stocks. Due to these characteristics, Blue-chip stocks are more desirable for long-term investment and risk-averse investors, while penny stocks are more suitable for short-term speculation or high-risk investors.