Penny Stock (Noun)
Meaning
A stock selling for less that $1/share.
Classification
Nouns denoting possession and transfer of possession.
Examples
- The company's stock had fallen to penny stock status after the CEO's scandalous resignation.
- He made a fortune by investing in penny stocks that later surged in value.
- The small investor's portfolio was dominated by penny stocks, which were highly speculative.
- After the company's financial troubles, its stock price plummeted to just 50 cents per share, a classic penny stock.
- Penny stocks are often associated with high risk and low liquidity, making them unappealing to institutional investors.