Practical Law Glossary Item 6-382-3681 (Approx. 2 pages)
Generally, low-priced (below $5) speculative equity securities of very small companies. While penny stocks generally trade over-the-counter (OTC), such as on the OTC Markets or the Over-the-Counter Bulletin Board Market, 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 SEC definition of penny stock, see Rule 3a51-1 under the Exchange Act.