Quick Definition

Penny stocks refer to shares of small companies that trade for less than $5 per share, often characterized by high volatility and low market capitalization.

Examples

• 1A biotech startup's shares trading at $1.50 on a less regulated market exchange.
• 2A small tech company's shares available for $0.75, often fluctuating rapidly in price due to speculative news.
• 3An energy firm recovering from financial difficulties, with its stocks priced at $2.00, attracting risk-tolerant investors.

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