Penny Stock

A penny stock refers to a common stock that trades at a relatively low price, typically below one dollar per share, and is associated with small companies. These stocks are characterized by their high volatility, low liquidity, and speculative nature, often trading over-the-counter (OTC) rather than on major exchanges. Due to limited public information and the absence of stringent listing requirements, investing in penny stocks carries significant risk, making them attractive to investors seeking high-reward opportunities but also highly prone to substantial losses.