Glossary

Penny stocks are low-priced, highly speculative small-cap stocks, typically trading below $5 per share.

These stocks are known for their high volatility and risk, often belonging to companies with low market capitalisation, limited financial history, or unproven business models. Penny stocks are usually traded on over-the-counter (OTC) markets or smaller exchanges, rather than major stock exchanges like the NYSE or NASDAQ. 📉💰

For example, a company in the early stages of development with a stock price of $1.50 per share would be considered a penny stock.

Fun fact: The term "penny stock" originated from the fact that these stocks were once traded for just pennies per share. While they may not literally trade for pennies anymore, they still represent low-priced, highly speculative investments. 🤔💡