Penny Stock
InvestingA stock trading below $5 per share, typically from small companies with higher risk and volatility.
Example
Example: Consider an investor building a $100,000 portfolio. Penny Stock — a stock trading below $5 per share, typically from small companies with higher risk and — directly affects investment strategy and long-term returns. Getting this concept right can mean tens of thousands of dollars in difference over a 20-year period. Model your portfolio with our investment calculator.