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Penny Stocks

Penny Stocks, generally speaking, are securities that are not listed on a national securities exchange and are priced under $5. There are exceptions for securities that have net tangible assets greater than $2 million if they have been in operation at least three years or greater than $5 million if in operation less than three years. Securities with average revenue of at least $6 million for the last three years may also not be considered penny stocks. For a complete definition of a Penny Stock, see SEC Rule 3a51-1.

See: SEC Rule 3a51-1 - Definition of Penny Stocks

 

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