Any stock that trades at under $5.00 per share is defined as a penny stock by the Securities and Exchange Commission (SEC). Many trade at under one dollar, but they're all known as
penny stocks because they trade a very low price. In the United Kingdom these stocks are called penny shares. You may have heard how some major companies, like Microsoft and Xerox, started out as penny stocks. You may have also heard some scary stories about unethical penny stock scams. Before you begin
investing in penny stocks, it’s a good idea to get an education.
[more...]