Penny Stocks

Penny Stocks are those that sell for less than $1 per share, however they may rise to as much as $10 per share as a result of heavy promotion. Penny Stocks are traded over-the-counter(OTC) or on the pink sheets. Companies traded on the pinks sheets don't have to meet minimum requirements or file with the SEC, unlike companies on a stock exchange.

Penny Stocks are highly speculative and risky. They are extremely hard to track and predict so many brokerages don't cover them. Some of the things that make penny stocks risky are: lack of information available to the public; no minimum standards; lack of history; and liquidity. All Penny Stocks.com is one site you can check out for more information on these types of stocks.