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.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

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.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.

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.

Dictionary of Financial Terms. Copyright © 2008 Lightbulb Press, Inc. All Rights Reserved.
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"The market is constantly abuzz with rumours of buy-out and merger opportunities," says Evan Jon, managing editor of Red Hot Penny Shares. "Managers are frantically buying shares in their own booming companies, and everybody's touting penny shares as the big opportunity of the new century."
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NICK HALL at Harris Allday and Fyshe Horton Finney's DAVID GILBERT followed, both with Fortune Oil, another China play, and, indeed, penny share. Like CYC, Fortune, a supplier of jet fuel and other oil products to South China, provided a direct stake in the Chinese boom.
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the The FSA said in a February 2010 statement: "Wills & Co would have been fined pounds 1.5million had they not been in the process of winding down their business and had a large amount of customer redress due."so-called penny share dealer, Wills & were targeted by the FSA in 2009 with a number of similar or targeting older people high for pressure sales directors, Darren and Prichard, also barred from senior roles services three years in for the FSA not rule some of 8000 former Wills & Co.
The move more than doubled 10 Group's penny share price.
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Another first-timer in the list was the nursing home operator Tamaris, which announced plans to double in size over the next two years, attracting penny share enthusiasts who were able to buy at around 2p.
He took up the right to purchase around a million penny shares in Green's original share offering, which gave him a stake of just under two per cent.