Penny stock


Also found in: Dictionary, Thesaurus, Legal, Wikipedia.

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 ?
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.
Some HK$10.91 billion (about $1.4 billion) of the market capitalization of the penny stocks was wiped out on July 26 as the market reacted strongly to the proposal by the Hong Kong Exchanges and Clearing Ltd.
In 2016, Smith consented to an SEC complaint alleging that that he and his company NBT Group fraudulently promoted a penny stock to investors.
Mechanicsburg, PA, August 29, 2012 --(PR.com)-- PSR LLC located in Mechanicsburg, PA is proud to announce to you the launch of the new website for Penny Stocks Message Board.
Most brokerages do not research penny stocks. So, how can you identity a good penny stock?
He agreed to settle the charges and be barred from trading in penny stocks for the rest of his life.
The SEC announced fraud and other charges against two individuals and a related company for their roles in a manipulative trading scheme involving Liberty Silver Corp., a penny stock.
We haven't had a recent update on the litigation that runs both ways between Arkansas Business Publishing Group and principals and associates of Golf Entertainment Inc., the Springdale penny stock company also known as Sienna Broadcasting Corp.
Stanley Wootton Award (Epsom Trainers Asscn): Penny Stock.
was buying into a purported media and internet company and that would cause the penny stock's price to increase substantially.
Rose has agreed to settle the charges and is barred from future penny stock offerings or from serving as an officer or director of a public company.
New York magazine published on Sunday a story by its staff writer, Jessica Pressler, about Mohammad Islam, an 18-year-old who just made $72 million trading penny stock. And the supposed finance whiz kid was earning money on the side by trading shares during lunch breaks at school.