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.
References in periodicals archive ?
Recently Chartsearch placed an advert in a leading broadsheet newspaper announcing that the editor of Penny Share Focus was working on a porfolio of shares most likely to double their value in 1998.
But the group warned that penny shares tend to be highly volatile and the insider tips were usually rubbish.
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If you only intend to buy penny shares now and again, or even make a one-off purchase, take a look at the Share Centre at this site.
Imran Ahmad gave Rangers a PS200,000 loan and was paid back PS178,000, was given a PS50,000 fee and PS22,000 was converted to 2.2m penny shares he later sold for more than PS1m.
It was also a year when penny shares threw off the brightest sparks.
BRIAN STOCKBRIDGE, Craig Whyte, Malcolm Murray, money's tight, Lloyd's Bank, Bill Ing, Rafat Rizvi, Dave King, Norman Crighton, Richard Hughes, Ticketus, penny shares, buy into Rangers if you dare, James Easdale, Charles Green, Jim McColl, you've heard them all.
Heard about the penny shares company that played a CD recording of the chimes of Big Ben to fool phone callers they were talking to an office in London?