Used in the context of general equities. stock that typically sells for less than $1 a share>, although it may rise to as much as $10/share after the initial public offering, usually because of heavy promotion. All are traded OTC, many of them in the local markets of Denver, Vancouver, or Salt Lake City. Bloomberg Financial Dictionary
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penny stock UK US noun [C] also UK penny share) FINANCE, STOCK MARKET
► a share with a very low value because it is considered a high-risk investment, for example in a company that is small, little known, or not very successful: »
The pharmaceuticals group, which has fallen back into penny stock status, has been threatened with being delisted from the Nasdaq.
»penny stock company/investors/market
Financial and business terms. 2012.