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What is Penny Stock?

Stocks selling at a very low price are called "penny stocks", eventhough there is no universally agreed upon price below which a stock must sell in order to qualify as a penny stock. Some individualls consider that only stocks trading for under a dollar a share should qualify as a penny stock. Other investors classify all stocks trading for less than $5 per share as penny stocks.

There is an agreement that a stock must sell at a relatively low price to qualify as a... more