List of Financial Market Terms

A penny stock is usually a small company with illiquid and speculative shares, usually also characterized by their limited listing requirements.

Trader's tend to avoid Penny Stocks due to their illiquid nature.  That said, they are still commonly spoken about as a result of the huge percentage gain potential they offer.  Just keep in mind it's a complete dice roll when betting on a penny stock.

Related terms: bagel land, mad hatter, Jekyll & Hyde

Open a thinkorswim by TDA account today!