Penny Stocks have been defined as less than 5 United States dollars and at times less than one United States dollars. Whichever way you choose it, the Penny Stocks are smaller stocks that can be invested in much easily than the bigger stocks.
Penny Stocks have been defined as less than 5 United States dollars and at times less than one United States dollars. Whichever way you choose it, the Penny Stocks are smaller stocks that can be invested in much easily than the bigger stocks.

Hi Gilburt, All shares that trade for less than $5 are technically considered penny stocks. True, most people think of shares at price points of less than $1 when they think of penny stocks, but the Securities and Exchange Commission, as well as most brokerage houses, use the $5 threshold.
Many trade for a few cents, some even for fractions of a penny (one tenth of a penny per share, for example). Stay away from these, you will almost certainly lose money trading them.
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