What is a penny stock?
A penny stock is a riskier, more speculative type of investment where shares of these companies are trading at less than $5 per share. These stocks often trade on pink sheets or over-the-counter bulletin board (OTCBB) and are regulated by the Securities and Exchange Commission with specific rules to follow.
Penny stocks not only have multiple terms, they also have multiple accepted definitions. Although sometimes referred to as penny shares or micro-cap stocks, the latter is often associated with a company's smaller market capitalization (between $50 and $300 million) while penny stocks are categorized by their per share price. While a common acceptance of a penny stock are those trading at less than $1 per share, the Securities Exchange Commission defines penny stocks as those trading under $5 per share. Penny stocks are mostly found outside of the major market exchanges, however, companies on major exchanges with lower stock prices are also sometimes referred to as penny stocks.
TradersPro MuscleStocks tab has a prebuilt scan that looks for penny stocks "pennies" In this Muscle Penny Stocks are BUY Rated stocks are between .10 and 1.50 cents per share.