Penny Stock
Penny stocks, also known as cent stocks in some countries, are common shares of small public companies that trade at low prices per share. In the United States, the SEC defines a penny stock as one that trades below $5 per share. In the United Kingdom, stocks priced under £1 are called penny shares. In the case of many penny stocks, low market price inevitably leads to low market capitalization. Such stocks can be highly volatile and subject to manipulation by stock promoters and pump and dump schemes. Such stocks present a high risk for investors, who are often lured by the hope of large and quick profits. Penny stocks in the USA are often traded over-the-counter on the OTC Bulletin Board, or Pink Sheets. In the United States, both the Securities and Exchange Commission and FINRA have specific rules to define and regulate the sale of penny stocks.
Read more about Penny Stock: Concerns For Investors, Regulation
Famous quotes containing the words penny and/or stock:
“There is no passion more dominant and instinctive in the human spirit than the need of the country to which one belongs.... The time comes when nothing in the world is so important as a breath of one’s own particular climate. If it were one’s last penny it would be used for that return passage.”
—Gertrude Stein (1874–1946)
“I have, thanks to my travels, added to my stock all the superstitions of other countries. I know them all now, and in any critical moment of my life, they all rise up in armed legions for or against me.”
—Sarah Bernhardt (1844–1923)