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)
“In the case of our main stock of well-worn predicates, I submit that the judgment of projectibility has derived from the habitual projection, rather than the habitual projection from the judgment of projectibility. The reason why only the right predicates happen so luckily to have become well entrenched is just that the well entrenched predicates have thereby become the right ones.”
—Nelson Goodman (b. 1906)