penny stocks definition
You may improve this article, discuss the issue on the talk page, or create a new article, as appropriate. (July 2010) (Learn how and when to remove this template message) 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 a security that trades below $5 per share, is not listed on a national exchange, and fails to meet other specific criteria. In the United Kingdom, stocks priced under Â£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.