penny stock

penny stock
penny stock see stock

Merriam-Webster’s Dictionary of Law. . 1996.

penny stock
Generally, low-priced (below $5) speculative securities of very small companies. While penny stocks generally trade over-the-counter, such as on the Over-the-counter Bulletin Board Market or in the pink sheets, they may also trade on securities exchanges, including foreign securities exchanges. In addition, penny stocks include the securities of certain private companies with no active trading market.
For the specific SEC definition, see Rule 3a51-1 under the Exchange Act.

Practical Law Dictionary. Glossary of UK, US and international legal terms. . 2010.

Look at other dictionaries:

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