Penny Stock Rules

Penny stocks are usually defined as stocks that trade on the OTC BB or Pink Sheets exchange. Many consider penny stocks anything under $5.

What are Penny Stocks

Penny stocks are stocks that have low price and market capitalization and traded outside the usual market exchanges. Penny stocks are considered as highly risky and speculative due to their small capitalization, large bid ask spreads, lack of liquidity and limited disclosure and following.

Why Penny Stocks

Finding a stock that goes from $10 to $300 can be very hard, but finding penny stocks that goes from .10 to $3 is a lot easier.