Penny Stocks

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Penny Stocks

Inexpensive issues of stock, typically selling at less than $1 a share, in companies that often are newly formed or involved in highly speculative ventures.

Penny stocks are usually available for sale over-the-counter, that is, among brokers and customers themselves, as opposed to being listed on the American Stock Exchange or the New York Stock Exchange.

References in periodicals archive ?
Dr Uche Uwaleke, Head of Banking and Finance Department, Nasarawa State University Keffi, told NAN in Lagos that the new pricing methodology led to losses posted by most penny stocks.
The SEC alleges that Jason Napodano, who headed a division called Zacks Small Cap Research within a larger investment research firm, misled investors in penny stocks by representing that he wasnt trading or holding positions in the companies he was writing about while secretly trading the same stocks based on nonpublic information about the publication date of his research.
The SEC alleges that the orchestrators of the scheme used boiler room-style call centers to make hundreds of thousands of cold calls that included the use of threatening and deceitful sales techniques to pressure victims -- many of whom were senior citizens -- into purchasing penny stocks.
Also, they used multiple websites to promote the penny stocks.
Brad Bennett, FINRA executive vice president and Head of the Department of Enforcement, said, "Broker-dealers are required by federal securities laws and FINRA rules to monitor customers' accounts so that those accounts are not used for illegal activities, such as money laundering and penny stock schemes that can cause considerable harm to investors.
The Online Massage Board Forum is especially designed for day traders of penny stocks, stocks options, futures trading, international stock market as well as foreign exchange trading.
The perils of going after easy money are ignored by one class of investors -- those who put money in penny stocks.
With many flamboyant operators bent on driving up stock price, the media/entertainment penny stock category has had its share of turmoil.
We explore the similarities and differences between penny stock IPOs and ordinary IPOs in relation to the major findings of IPO research.
Among recent enforcement actions were charges from the Securities and Exchange Commission against three penny stock promoters for defrauding investors and a settlement from three former Oppenheimer employees resulting from unregistered penny stock sales.
A scammer buys a lot of a penny stock and then hypes it, perhaps online or via email.