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:
“Socialized medicine, some still cry, but it’s long been socialized, with those covered paying for those who are underinsured. American medicine is simply socialized badly, penny wise and pound foolish.”
—Anna Quindlen (b. 1952)
“However low and poor the taking Snuff argues a Man to be in his own Stock of Thought, or Means to employ his Brains and his Fingers, yet there is a poorer Creature in the World than He, and this is a Borrower of Snuff; a Fellow that keeps no Box of his own, but is always asking others for a Pinch.”
—Richard Steele (1672–1729)