Penny Stocks

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Jul 21, 2010 9:26 am


In the United States of America, a penny stock,
also known as a micro cap equity, refers to a share in a company which trades
for less than $5.00.

                                                                                                   
A penny stock that trades at a relatively low price and
market capitalization, usually outside of the major market exchanges. These
types of stocks are generally considered to be highly speculative and high risk
because of their lack of liquidity, large bid-ask spreads, small capitalization
and limited following and disclosure. They will often trade over the counter
through the OTCBB and pink sheets.

Jul 24, 2010 12:13 pm

Thanks for educating us on what penny stocks are. It's always been a pretty nebulous concept I've had a hard time wrapping my head around.