Business23 Jul 2010 05:46 am
The word penny stock has a lot of meaning it can be explained in apt only by knowing the circumstance of its usage. One of the meanings of the penny stock is the stock which sells by a company less than one dollar. I it can also said that the stock which sells less than five dollars is also considered to be as penny stock. In United State of America it is termed as ‘micro cap equity’ (shares sells at or below $5). Any equity share other than security is also considered to be as penny stock. When we are searching for the exact definition of the penny stock we won’t reach anywhere because it is frequently changing so that the chance fraud is also high. So we can conclude that Penny Stock is a share which sells below $1 / share.
