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What Exactly Are Penny Stocks?

What Exactly Are Penny Stocks?


Beginners just starting out may find the concept of penny stocks a little difficult. There are is no specific answer of what exactly a penny stock is and the meaning of the phrase differs according to individuals and organizations.

What do the big wigs define it as?

It is defined by the Securities and Exchange Commission (SEC) as the trading of stocks that are speculative, high-risk and valued for less than $5 per share. 

Some refute this claim by setting a lower cut-off level for their penny stock to $3 or less than $1.