penny stock
Học thuậtThân thiện
Definition
Noun: - A low-priced, speculative stock: A "penny stock" is a share of a small company that trades at a very low price per share, typically below $1, though sometimes defined as below $5. These stocks are considered highly speculative due to their low price, small market capitalization, and often limited trading volume or publicly available information.
Usage
- Penny stocks are often traded over-the-counter (OTC) rather than on major stock exchanges.
- They are associated with higher risk and potential for volatility.
- The term is used in financial and investment contexts.
Examples
Advanced Usage
- "to trade in penny stocks": to buy and sell these speculative, low-priced shares.
- He made a small fortune trading in penny stocks, but he lost most of it just as quickly.
Variants and Related Words
- Micro-cap stock: A related term for companies with a very small market capitalization, which often overlap with penny stocks.
- OTC stock: A stock traded over-the-counter, a common venue for penny stocks.
- Speculative stock: A broader category that includes penny stocks and other high-risk investments.
Synonyms
- Junior stock
- Small-cap stock (though this is a broader, slightly less specific term)
Related Phrases
- Penny stock pump and dump: A fraudulent scheme where the price of a penny stock is artificially inflated ("pumped up") through false promotion so that the fraudsters can sell ("dump") their shares at a profit.
- The SEC charged the group with operating a penny stock pump and dump scheme.
Noun
- a stock selling for less that $1/share