A US Penny stock does not trade on a major US exchange as it does not meet the exchange's listing requirements. A US Penny stock trading on the Pink/OTC markets is usually low priced, may lack liquidity, and is considered speculative because it has less regulatory standards to meet and less required report filings. A stock that was originally listed on a major US exchange can be "delisted" because it no longer meets the exchange's listing requirements. A company's shares that have been delisted from NYSE, Nasdaq, etc. may later trade on the Pink or OTC markets with less regulatory oversight.
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