penny stock


In the U.S., a penny stock is a common stock that traes for less than $5 a share and are traded over the counter (OTC) through quotation services such as the OTCBB or the Pink Sheets. Although a penny stock is said to be "thinly traded," share volumes traded daily can be in the hundreds of millions for a sub-penny stock. Legitimate information on penny stock companies can be difficult to find and a stock can be easily manipulated.

Trivia about penny stock

  • It's the term for an often speculative security that typically sells for less than a dollar