ADVERTISEMENT

What is a Penny Stock? Comments

  • By Jocelyn Black Hodes, DailyWorth's Resident Financial Advisor
  • June 21, 2013

A penny stock is a stock that trades at a relatively low price and is not usually listed on a major market exchange such as the NASDAQ. These types of stocks are generally considered to be high risk because of their lack of liquidity, pricing behavior, small capitalization, short history and limited disclosure. They will often trade over the counter through the OTCBB and pink sheets.

 

See Also:

Penny Stocks Are Cheap for a Reason

Stocks: Better Than a Gift Card?

Ask An Advisor: How risky is it to short a stock?

Stock Talk for Everyone

What Does it Mean to "Short" a Stock?

Tagged in: Sponsored, Glossary

© Copyright DailyWorth 2014