Equity

Penny Stock

Definition

Low-priced shares (typically under $5) of small public companies. Often highly speculative with high volatility and risk.

Example
A biotech startup trading at $0.80 per share is considered a penny stock. ETF (Exchange-Traded Fund) Category: Equity / Investment Vehicle Definition: A basket of securities (stocks, bonds, commodities) traded on an exchange like a stock. Offers diver
Frequently Asked Question
What is Penny Stock in trading?
Low-priced shares (typically under $5) of small public companies. Often highly speculative with high volatility and risk.
APA Citation
Clark, R. (2025). Penny Stock. VixShield Trading Glossary. Retrieved from https://www.vixshield.com/glossary/penny-stock
RC
Russell Clark, FNP-C
Author of SPX Mastery series · Founder of VixShield
Last updated:  ·  Source: VixShield Trading Glossary — From SPX Mastery by Russell Clark
⚠️ Not financial advice. This definition is educational content from the SPX Mastery book series by Russell Clark (VixShield). Past performance is not indicative of future results. Trading options involves substantial risk of loss and is not appropriate for all investors. Always paper trade before risking real capital.