penny stock Hear it!

penny stock definition - finance
Very low-priced stocks that are viewed as speculative and typically sell for less than $1 per share. However, the definition of a penny stock can be expanded to include stocks that are priced less than $5 a share. Penny stocks are almost exclusively traded on over-the-counter markets because they donÂ’t qualify for exchange membership.

Webster's New World Finance and Investment Dictionary Copyright © 2003 by Wiley Publishing, Inc., Indianapolis, Indiana.
Used by arrangement with John Wiley & Sons, Inc.

Comments
Improve this definition.
Do you have more to add? Share your linguistic knowledge or observation.
/Register to save your comments.