meandnadine
 |
In the U.S. financial markets, the term penny stock commonly refers to any stock trading outside one of the major exchanges (NYSE, NASDAQ, or AMEX), and is often considered pejorative. However, the official SEC definition[1] of a penny stock is a low-priced, speculative security of a very small company, regardless of market capitalization or whether it trades on a securitized exchange (like NYSE or NASDAQ) or an "over the counter" listing service, such as the OTCBB or Pink Sheets. The terms penny stocks, microcap stocks, small caps, and nano caps are also all sometimes used interchangeably, however per the SEC definition, penny stock status is determined by share price, not market capitalization or listing service.
Many new investors are lured to the appeal of penny stocks due to the low price and potential for rapid growth which may be as high as several hundred dollars in a few days. Similarly, severe loss can occur and many penny stocks lose all of their value in the long term. Accordingly, the SEC warns that penny stocks are high risk investments and new investors should be aware of the risks involved. These risks include limited liquidity, lack of financial reporting, and fraud. |
honey
 |
They are a big no-no, in my opinion. They are considered to be very high risk investment. Basically, penny stock is a low-priced, speculative security of a very small company. It is very difficult to sell them once you own them because they trade infrequently, plus it is very hard to find dependable quotations for them because they may be hard to price. Refer to the SEC definitions and warnings on penny stocks/ |
mbrcatz
|
Super cheap stocks. Usually worthless. Highly speculative.
Probably a pretty bad idea, if you're looking to make money.
don't buy any stocks until you've read the BALANCE SHEETS for the companies, and know how much each share of stock is actually WORTH (note - worth is NOT the same as "selling price".) |
Homepage 
Financial
Forum 
Investing 
No Spam
Adult 
Gambling
Unfinished
Deception
Plagiarism
Not English
