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Penny Stock

Trading Term

Penny stocks are described in varying ways, including a stock that trades for less than one dollar per share or in some cases, less than five dollars per share. Others define penny stocks as very small companies with a short operating history and only a few million dollars in net tangible assets. For purposes of its US Penny Stock trading permission, IBKR defines a “Penny Stock” as any stock traded “over-the-counter” on PINK or OTCBB (not counting liquid ADRs).

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