The U.S. Securities and Exchange Commission (SEC) uses the term "penny stock" to refer to a security, a financial instrument which represents a given financial value, issued by small public companies …

Dec 7, 2023 · What Are Penny Stocks? The exact definition of a penny stock varies throughout the investing world, but any stock trading at $5 per share or less can be considered a penny stock.

The formal definition of micro-cap stocks are those of publicly traded companies with a market capitalization between $50 million and $300 million. Penny stocks are those that trade for less than …

Oct 30, 2025 · What Are Penny Stocks? Penny stocks are typically shares of small companies that trade at lower prices, often under $5 per share.

Jul 18, 2024 · FINRA describes them as "typically stocks issued by very small companies that trade at less than $5 per share." Because they're often sold "over the counter" (OTC), rather than through...

Jun 12, 2025 · Some investors consider penny stocks to be those that trade for less than $1 and/or over the counter on the OTC Bulletin Board. You may see penny stocks referred to as micro-cap stocks at …

Jul 13, 2023 · Penny stocks are shares of small, often lesser-known companies that trade for less than $5 per share. Their low price makes them accessible to all types of investors, but they are also …

Jan 25, 2024 · Penny stocks are small companies whose shares trade for a relatively low price. They may look cheap compared to popular stocks such as Amazon or Apple, but often they’re much more …

Feb 21, 2025 · The definition of a penny stock can vary depending on who you ask, but penny stocks aren't always stocks trading for pennies. According to the U.S. Securities and Exchange Commission …

The definition of penny stocks as securities trading below $5 per share encompasses a broad range of companies with varying risk profiles, making careful individual assessment essential before any …