penny stock

Penny Stock

A stock that sells for less than $1 a share but may also rise to as much as $10/share as a result of heavy promotion. All penny stocks are traded OTC or on the pink sheets.

Investopedia Commentary

Penny stocks are highly speculative and risky. Many brokerages don't cover them simply because they are so difficult to track and predict.

Related Links

The Lowdown On Penny Stocks
Catching a Lift on the Penny Express
The Dirt On Delisting

See also: Microcap Stock, OTC, Pink Sheets, Stock, Unlisted Security

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.