Penny stock

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Penny stock

Used in the context of general equities. Stock that typically sells for less than $1 a share, although it may rise to as much as $10/share after the initial public offering, usually because of heavy promotion. All are traded OTC, many of them in the local markets of Denver, Vancouver, or Salt Lake City.

Penny Stock

Stock in a very small company with low market capitalization and low prices. Penny stocks are considered highly speculative and rarely are traded on an exchange because so few meet listing requirements. While there is no hard-and-fast definition of what stocks are considered penny stocks, they usually have a share price under $5 and come from a new, unestablished company. While most companies issuing penny stocks fail, investing in these stocks can lead to extraordinarily large returns.

penny stock

A low-priced, speculative stock. Although the maximum price at which a security may sell and still be classified as a penny stock is subject to individual interpretation, $1 is probably the most commonly recognized limit. Many penny stocks are traded in the over-the-counter market and on smaller exchanges.

Penny stock.

Stocks that trade for less than $1 a share are often described as penny stocks.

Penny stocks change hands over-the-counter (OTC) and tend to be extremely volatile. Their prices may spike up one day and drop dramatically the next.

The fluctuations reflect the unsettled nature of the companies that issue them and the relatively small number of shares in the marketplace. While some penny stocks may produce big returns over the long term, many turn out to be worthless.

Institutional investors tend to avoid penny stocks, and brokerage firms typically warn individual investors of the risks involved before handling transactions in these stocks.

However, penny stocks are sometimes marketed aggressively to unsuspecting investors.

References in periodicals archive ?
Bandyopadhyay says investors must be careful while betting on penny stocks.
IPOs listed on other markets (such as the Nasdaq SmallCap Market, OTC Bulletin Board, pink sheets, or regional exchanges) are classified as penny stocks if the offering is not issued by an investment advisor and the offer price is $5 or less.
Leeds is the author of Invest in Penny Stock, publisher of the world famous Peter Leeds penny stock newsletter (over 35,000 subscriptions sold), and pubic investing speaker.
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com provides quality, innovative ways to make money through the trading of penny stocks, OTC stocks, and Pink Sheets.
In today's environment, there is little difference between big board stocks and penny stocks.
com (PSI) released FREE insider trading reports for US market investors to track the following active stocks and penny stocks :Thinspace (OTCMKTS:THNS), Pharmacyte Biotech (OTCMKTS:PMCB), MaryJane (OTCMKTS:MJMJ), TOTALLY HEMP CRAZY (OTCMKTS:THCZ), EKSO BIONICS (OTCBB:EKSO), and Anavex Life Sciences (OTCMKTS:AVXL).
The Fool responds: Lots of people lose lots of money on penny stocks.
Investment philosophy: Penny stocks are highly risky.
The goal is for Penny Stock Observer to become THE hub for identifying trending penny stocks, possible penny stocks to buy, promoted penny stocks, and even hot stocks to watch in the near future.
Firms like Hanover Sterling that deal in inexpensive and typically unseasoned securities known as penny stocks collapse with dreary regularity.