Penny Stocks 101: Introduction to Penny Stock Trading
Prior definitions of penny stocks pegged them as stocks trading for $1, or less. However, the Securities and Exchange Commission (SEC) has revised the definition as follows, ‘… penny stocks refer to stocks trading under $5 per share.’ The $5 penny stock threshold is an important level, particularly in the US. In the United Kingdom, penny stocks trade for £1, or less.The SEC goes on to explain that penny stocks by definition are, ‘…Low-priced shares of small companies. Penny stocks may trade infrequently – which means that it may be difficult to sell penny stock shares once you have them.’Why are Penny Stocks Risky & How Can Y...