penny stock


A stock which sells for less than one dollar per share (or in some cases, less than five dollars per share). Most penny stocks have only a few million dollars in net tangible assets and have a short operating history. Penny stocks are almost always small cap stocks, but the reverse isn't necessarily true.

Use penny stock in a sentence

Henry quit his job as a supermarket cashier after he made an obscene amount of money betting on penny stocks.

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I could only afford to put money into a penny stock and when I told my friends that they all laughed pretty hard at me.

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My brother somehow became a millionaire by investing in very risky penny stocks that traded for just a few cents on the stock market.

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flier Penny Stock Reform Act of 1990