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 ?
Unlike foreign investors who show more interest in high-cap stocks, a good number of domestic investors take positions in penny stocks given their affordability,' he said.
In addition to a permanent penny stock bar, Napodano agreed to pay full disgorgement of his insider trading profits totaling $143,865.
Oppenheimer is also required to retain an independent consultant to conduct a comprehensive review of the adequacy of Oppenheimer's penny stock and AML policies, systems and procedures.
Since small investors are starved for information, the members of Trade4all who trade in penny stocks, for example, would find the penny stock forum on the message board a boon in their trading activity.
Although exchanges put most penny stocks in the trade- totrade ( T2T) category, many are included in the B group on BSE.
Another possible reason for maintaining a lower offer price was that penny stocks tended to be "house stocks" with high percentage bid-ask spreads.
The AllPennyStocks site offers lists of penny stocks for you to research and also gives information on why certain companies deserve attention.
have agreed to settle with the SEC on charges stemming from the unregistered sales of billions of shares of penny stocks on behalf of a customer.
The Fool responds: Naive investors fall for hyped penny stocks all the time.
Asked how this and other predictions play into his penny stocks and the various penny stock investing picks, Leeds mentions that all factors affect the economy and the nation in their own ways, and those in turn will impact penny stock investing.