What Is a Penny Stock In share Market /Stock Market

Penny stocks, also known as cent stocks in some countries, are common shares of small public companies that trade at less than $1.00[1] (or similarly small amounts in other countries). In the United Kingdom, stocks priced under £1 are called penny shares. In the case of many penny stocks, low market price inevitably leads to low market capitalization. Such stocks can be highly volatile and subject to manipulation by stock promoters and pump and dump schemes. Such stocks present a high risk for investors, who are often lured by the hope of large and quick profits. Penny stocks in the USA are often traded over-the-counter on the OTC Bulletin Board, or Pink Sheets.[2][3] In the United States, both the Securities and Exchange Commission and FINRA have specific rules to define and regulate the sale of penny stocks.

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