When it comes to penny stocks, there is the myth, and then there is the reality.
The other vehicle for these individuals to get stock is to take advantage of exemptions from the federal registration requirements. Struggling young companies just starting out are perfect examples. Many times the management or majority stock holders will maintain the listing of the stock by continuing to meet the requirements of the listing exchanges as described above. This same thing can be done by a single investor or a group of investors on the Internet. Market Makers will not be permitted to begin quotation of a Stock whose issuer does not meet this filing requirement. They can and probably mostly are just shareholders or interested investors talking about the pros and cons of a stock.