About Penny Stocks
Penny Stocks are considered risky investments. Proper due diligence should be performed very thoroughly.
Stocks are often referred to as a penny stock if it trades below a price of $5, however many use the $1 criteria to define a penny stock.
Penny Stocks are traded through many exchanges: Over The Counter (OTC), Pink Sheets, Over The Counter Bulletin Board (OTCBB), Nasdaq, AMEX, and NYSE.
Many penny stocks have a very low float or very few shares associated with the stock. This can be a cause for very high volatility in the stock price.
Penny Stock symbol suffix’s:
.PK= pink sheets, which have very little to no regulation
.OB= over the counter bulletin board- fair amount of SEC regulation
Letters at the end of a stock symbol:
Q= Bankruptcy
E= SEC delinquent filing