Penny stock

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1. Investment - investment strategies - equities - listed equities.

An ordinary equity share - common stock - with a current market market price of less than US$ 1 per share.

So that its current market price can be expressed entirely in terms of "pennies" (= US dollar cents).


Investing in such stocks can be appealing to certain very naive investors, on the basis that the potential for large proportionate gains - for example a doubling of the value per share - could be considered more likely than for a stock with a higher current market price per share.


They are generally very high risk investments, and unsuitable for non-professional investors.


2. Investment - investment strategies - equities - listed equities.

An ordinary equity share with a very low current market price per share, below a given threshold.

However - depending on the market - that threshold need not be exactly US$ 1, as described above.

For example, perhaps GBP 0.50, or US$ 5.


See also