S&P 500   3,980.35 (+0.01%)
DOW   31,580.63 (+0.00%)
QQQ   298.28 (-0.23%)
AAPL   155.01 (-0.61%)
MSFT   257.35 (-0.29%)
META   160.47 (+0.05%)
GOOGL   108.72 (-0.67%)
AMZN   128.42 (-0.82%)
TSLA   285.24 (+0.54%)
NVDA   137.18 (+0.03%)
NIO   17.43 (-0.29%)
BABA   88.94 (-1.83%)
AMD   81.48 (+2.35%)
T   16.84 (-0.18%)
MU   54.46 (-0.98%)
CGC   3.41 (+0.00%)
F   15.17 (-1.69%)
GE   73.19 (-0.53%)
DIS   111.75 (-0.83%)
AMC   8.43 (+0.48%)
PYPL   95.19 (+0.23%)
PFE   46.37 (+0.52%)
NFLX   225.00 (-1.73%)
S&P 500   3,980.35 (+0.01%)
DOW   31,580.63 (+0.00%)
QQQ   298.28 (-0.23%)
AAPL   155.01 (-0.61%)
MSFT   257.35 (-0.29%)
META   160.47 (+0.05%)
GOOGL   108.72 (-0.67%)
AMZN   128.42 (-0.82%)
TSLA   285.24 (+0.54%)
NVDA   137.18 (+0.03%)
NIO   17.43 (-0.29%)
BABA   88.94 (-1.83%)
AMD   81.48 (+2.35%)
T   16.84 (-0.18%)
MU   54.46 (-0.98%)
CGC   3.41 (+0.00%)
F   15.17 (-1.69%)
GE   73.19 (-0.53%)
DIS   111.75 (-0.83%)
AMC   8.43 (+0.48%)
PYPL   95.19 (+0.23%)
PFE   46.37 (+0.52%)
NFLX   225.00 (-1.73%)
S&P 500   3,980.35 (+0.01%)
DOW   31,580.63 (+0.00%)
QQQ   298.28 (-0.23%)
AAPL   155.01 (-0.61%)
MSFT   257.35 (-0.29%)
META   160.47 (+0.05%)
GOOGL   108.72 (-0.67%)
AMZN   128.42 (-0.82%)
TSLA   285.24 (+0.54%)
NVDA   137.18 (+0.03%)
NIO   17.43 (-0.29%)
BABA   88.94 (-1.83%)
AMD   81.48 (+2.35%)
T   16.84 (-0.18%)
MU   54.46 (-0.98%)
CGC   3.41 (+0.00%)
F   15.17 (-1.69%)
GE   73.19 (-0.53%)
DIS   111.75 (-0.83%)
AMC   8.43 (+0.48%)
PYPL   95.19 (+0.23%)
PFE   46.37 (+0.52%)
NFLX   225.00 (-1.73%)
S&P 500   3,980.35 (+0.01%)
DOW   31,580.63 (+0.00%)
QQQ   298.28 (-0.23%)
AAPL   155.01 (-0.61%)
MSFT   257.35 (-0.29%)
META   160.47 (+0.05%)
GOOGL   108.72 (-0.67%)
AMZN   128.42 (-0.82%)
TSLA   285.24 (+0.54%)
NVDA   137.18 (+0.03%)
NIO   17.43 (-0.29%)
BABA   88.94 (-1.83%)
AMD   81.48 (+2.35%)
T   16.84 (-0.18%)
MU   54.46 (-0.98%)
CGC   3.41 (+0.00%)
F   15.17 (-1.69%)
GE   73.19 (-0.53%)
DIS   111.75 (-0.83%)
AMC   8.43 (+0.48%)
PYPL   95.19 (+0.23%)
PFE   46.37 (+0.52%)
NFLX   225.00 (-1.73%)

Penny Stocks

Penny stocks are public companies that have a share price of $1.00 or less. These companies often have market capitalizations of under $100 million. This page lists penny stocks that have the largest trading volume during the most recent trading day. Learn more about penny stocks.

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CompanyCurrent PricePE RatioMarket CapVolumeAverage VolumeIndicator(s)
NewAge, Inc. stock logo
N/A$12.79 million49.12 million27.65 millionUpcoming Earnings
Gap Down
LightInTheBox Holding Co., Ltd. stock logo
N/A$110.77 million938,515198,040High Trading Volume
Vislink Technologies, Inc. stock logo
Vislink Technologies
N/A$25.96 million1.31 million239,610High Trading Volume
Progenity, Inc. stock logo
N/A$124.80 million943,5618.59 millionPositive News
Pingtan Marine Enterprise Ltd. stock logo
Pingtan Marine Enterprise
N/A$77.33 million650,53241,828High Trading Volume
Orbital Energy Group
N/A$59.68 million814,8441.59 millionGap Down
Mullen Automotive, Inc. stock logo
Mullen Automotive
N/A$372.95 million621,95077.08 millionUpcoming Earnings
Gap Down
Trading Halted
Babylon Holdings Limited stock logo
N/A$30.53 million454,049999,357
CarLotz, Inc. stock logo
N/A$45.68 million641,7752.62 million
Invacare Co. stock logo
N/A$35.13 million245,245490,050Gap Down
Alexco Resource Corp. stock logo
Alexco Resource
N/A$76.48 million534,536496,046News Coverage
Avino Silver & Gold Mines Ltd. stock logo
Avino Silver & Gold Mines
8.83$62.17 million434,008225,948Analyst Report
News Coverage
Trevena, Inc. stock logo
N/A$34.74 million1.10 million871,824
Troika Media Group, Inc. stock logo
Troika Media Group
N/A$41.67 million324,63676,837Upcoming Earnings
Gap Down
High Trading Volume
Sphere 3D Corp. stock logo
Sphere 3D
N/A$36.36 million359,658664,530News Coverage
Gap Up
United Insurance Holdings Corp. stock logo
United Insurance
N/A$41.08 million213,95697,811Gap Down
High Trading Volume
BioLargo, Inc. stock logo
N/A$65.39 million794,547308,556Gap Up
High Trading Volume
Evofem Biosciences, Inc. stock logo
Evofem Biosciences
N/A$26.06 million633,5154.65 million
GEE Group, Inc. stock logo
GEE Group
3.63$82.72 million254,367733,450Analyst Report
Gap Up
American Virtual Cloud Technologies, Inc. stock logo
American Virtual Cloud Technologies
N/A$13.82 million997,687N/AGap Up
High Trading Volume
Kaixin Auto Holdings stock logo
Kaixin Auto
N/A$135.60 million246,472389,196
Sonim Technologies, Inc. stock logo
Sonim Technologies
N/A$25.06 million203,202385,420Positive News
Super League Gaming, Inc. stock logo
Super League Gaming
N/A$29.56 million179,345239,105News Coverage
Positive News
Arcadia Biosciences, Inc. stock logo
Arcadia Biosciences
N/A$17.64 million176,372199,085
Hillstream BioPharma, Inc. stock logo
Hillstream BioPharma
N/A$10.49 million145,042261,188Gap Down
Nisun International Enterprise Development Group Co., Ltd stock logo
Nisun International Enterprise Development Group
0.46$21.29 million199,791N/ANews Coverage
High Trading Volume
VivoPower International PLC stock logo
VivoPower International
N/A$20.70 million130,192115,939Gap Down
Connexa Sports Technologies Inc. stock logo
Connexa Sports Technologies
N/A$10.23 million156,90761,853Positive News
Gap Up
High Trading Volume
9 Meters Biopharma, Inc. stock logo
9 Meters Biopharma
N/A$69.60 million455,3761.37 millionGap Up
uCloudlink Group Inc. stock logo
uCloudlink Group
N/A$15.27 million225,078139,533Gap Down
Jupiter Wellness, Inc. stock logo
Jupiter Wellness
N/A$16.89 million153,580162,808
ASLAN Pharmaceuticals Limited stock logo
ASLAN Pharmaceuticals
N/A$53.10 million157,607229,752News Coverage
Gap Up
DatChat, Inc. stock logo
N/A$19.47 million126,432306,785News Coverage
Gap Down
Faraday Future Intelligent Electric Inc. stock logo
Faraday Future Intelligent Electric
N/A$295.58 million130,81816.00 millionGap Up
eMagin Co. stock logo
N/A$55.75 million147,626226,513News Coverage
Conformis, Inc. stock logo
N/A$48.88 million392,032647,385
Healthcare Triangle, Inc. stock logo
Healthcare Triangle
N/A$18.37 million218,958151,617
Foresight Autonomous Holdings Ltd. stock logo
Foresight Autonomous
N/A$42.09 million142,970217,612News Coverage
Gap Up
ENDRA Life Sciences Inc. stock logo
ENDRA Life Sciences
N/A$13.11 million301,631347,524Gap Up
Milestone Scientific Inc. stock logo
Milestone Scientific
N/A$59.96 million100,59645,885Gap Down
High Trading Volume
IMAC Holdings, Inc. stock logo
N/A$12.98 million175,020708,132
Yunji Inc. stock logo
24.83$159.91 million114,148114,899Gap Down
Mawson Infrastructure Group, Inc. stock logo
Mawson Infrastructure Group
4.45$57.27 million114,908250,545
IMV Inc. stock logo
N/A$50.95 million129,947319,180
Hepion Pharmaceuticals, Inc. stock logo
Hepion Pharmaceuticals
N/A$45.08 million134,852116,268News Coverage
AVROBIO, Inc. stock logo
N/A$38.48 million89,976176,531
Cocrystal Pharma, Inc. stock logo
Cocrystal Pharma
N/A$35.20 million215,668286,237
Otonomy, Inc. stock logo
N/A$20.25 million218,731908,572
Adial Pharmaceuticals, Inc. stock logo
Adial Pharmaceuticals
N/A$12.93 million152,084296,658Positive News
Gap Down
Qutoutiao Inc. stock logo
N/A$27.81 million83,00777,883Upcoming Earnings
Gap Up
Qualigen Therapeutics, Inc. stock logo
Qualigen Therapeutics
N/A$14.12 million201,803206,781
Addex Therapeutics Ltd stock logo
Addex Therapeutics
N/A$10.77 million73,851278,665
Lizhi Inc. stock logo
43.78$44.39 million82,246627,511Gap Down
Sio Gene Therapies Inc. stock logo
Sio Gene Therapies
N/A$24.18 million216,610N/AGap Down
High Trading Volume
Boxlight Co. stock logo
N/A$47.87 million109,862375,508
EZFill Holdings Inc. stock logo
N/A$22.51 million83,75858,434
Recon Technology, Ltd. stock logo
Recon Technology
N/A$18.62 million112,853121,166Analyst Report
Akanda Corp. stock logo
N/A$20.09 million95,901688,860Lockup Expiration
News Coverage
Hoth Therapeutics, Inc. stock logo
Hoth Therapeutics
N/A$13.40 million155,119263,215Upcoming Earnings
Inhibikase Therapeutics, Inc. stock logo
Inhibikase Therapeutics
N/A$22.84 million71,214599,264Positive News
Gap Down
Assure Holdings Corp. stock logo
N/A$10.87 million72,5881.12 million
AcelRx Pharmaceuticals, Inc. stock logo
AcelRx Pharmaceuticals
0.99$42.12 million206,8474.08 millionGap Up
NuZee, Inc. stock logo
N/A$17.75 million78,550244,379Gap Down
Digihost Technology Inc. stock logo
Digihost Technology
5.03$21.13 million77,58080,631
Elys Game Technology, Corp. stock logo
Elys Game Technology
N/A$15.41 million97,203141,532Options Volume
Petros Pharmaceuticals, Inc. stock logo
Petros Pharmaceuticals
N/A$13.22 million86,760152,526Gap Down
Meiwu Technology
N/A$22.36 million78,651192,010
Oragenics, Inc. stock logo
N/A$33.40 million185,739221,599
Aileron Therapeutics, Inc. stock logo
Aileron Therapeutics
N/A$15.57 million297,319530,905Positive News
Gap Down
Cuentas Inc. stock logo
N/A$12.21 million68,320161,078Positive News
Taoping Inc. stock logo
N/A$10.61 million72,961315,019News Coverage
Gap Up
LogicBio Therapeutics, Inc. stock logo
LogicBio Therapeutics
N/A$12.03 million135,531249,368Gap Up
ReTo Eco-Solutions, Inc. stock logo
ReTo Eco-Solutions
N/A$15.50 million92,298214,215Gap Up
Can-Fite BioPharma Ltd. stock logo
Can-Fite BioPharma
N/A$24.20 million55,228196,673
AIM ImmunoTech Inc. stock logo
AIM ImmunoTech
N/A$31.39 million73,533104,348Gap Up
Lixte Biotechnology Holdings, Inc. stock logo
Lixte Biotechnology
N/A$11.71 million64,555109,241Gap Up
Dynatronics Co. stock logo
N/A$10.29 million79,88531,167News Coverage
Gap Down
High Trading Volume
Motorsport Games Inc. stock logo
Motorsport Games
N/A$13.44 million60,02067,219
TC Biopharm (Holdings) Plc stock logo
TC Biopharm
N/A$11.86 million137,789350,032
Onion Global
N/A$56.24 million76,778102,032Upcoming Earnings
Cyclerion Therapeutics, Inc. stock logo
Cyclerion Therapeutics
N/A$34.95 million50,951106,077
Future FinTech Group Inc. stock logo
Future FinTech Group
N/A$32.71 million84,046214,226News Coverage
Gap Up
Metacrine, Inc. stock logo
N/A$20.22 million74,967493,395News Coverage
eFFECTOR Therapeutics, Inc. stock logo
eFFECTOR Therapeutics
0.71$22.33 million65,642606,764Negative News
Stealth BioTherapeutics Corp stock logo
Stealth BioTherapeutics
N/A$18.84 million111,725188,605
Muscle Maker, Inc. stock logo
Muscle Maker
N/A$12.31 million81,267173,704News Coverage
Positive News
Alterity Therapeutics Limited stock logo
Alterity Therapeutics
N/A$13.07 million59,698100,723
Aprea Therapeutics, Inc. stock logo
Aprea Therapeutics
N/A$17.33 million46,291140,816News Coverage
Gap Down
Otonomo Technologies Ltd. stock logo
Otonomo Technologies
N/A$54.59 million82,658848,172
TOMI Environmental Solutions, Inc. stock logo
TOMI Environmental Solutions
N/A$16.05 million40,720280,478
Xenetic Biosciences Inc stock logo
Xenetic Biosciences
N/A$10.02 million46,26736,434News Coverage
Positive News
Air Industries Group stock logo
Air Industries Group
13.95$22.59 million45,24526,560News Coverage
Aurora Mobile Limited stock logo
Aurora Mobile
N/A$105.62 million34,72377,680Upcoming Earnings
Gap Down
Happiness Development Group Limited stock logo
Happiness Development Group
N/A$14.48 million166,964143,194News Coverage
N/A$12.46 million49,03463,819Gap Down
Acasti Pharma Inc. stock logo
Acasti Pharma
N/A$35.60 million37,33568,622Gap Down
Biocept, Inc. stock logo
N/A$15.91 million31,05370,925Upcoming Earnings
Analyst Report
Medalist Diversified REIT, Inc. stock logo
Medalist Diversified REIT
N/A$13.83 million36,01264,730
Sigma Additive Solutions, Inc. stock logo
Sigma Additive Solutions
N/A$10.13 million29,37646,041News Coverage
Qumu Co. stock logo
N/A$11.79 million40,65755,459
Penny Stocks, What You Need To Know

Penny stocks have advantages and obstacles that make it a unique asset class

You’re familiar with the phrase “you get what you pay for.” In the case of penny stocks, investors are hoping to get much more than they pay for. And penny stocks are an asset class that can deliver a large reward for a small risk. In this article, we’ll provide a definition of what a penny stock is, where you can find penny socks, whether penny stocks are a good investment, and some strategies to make money in penny stocks.

What is a Penny Stock?

Forty years ago, a penny stock was defined as a stock that traded for under one dollar. They were stocks that investors could buy for literally pennies on the dollar. Some investors still believe that a stock is only a penny stock if it trades for $1 or less.

However, the Securities & Exchange Commission (SEC) defines a penny stock as one that trades for less than $5 a share. And some investors may even take an even more liberal definition of a penny stock to include any stock that trades under $10.

Why Do Investors Buy Penny Stocks?

Whatever definition you use, the attraction of penny stocks is easy to see. Penny stocks offer the opportunity of a high return for a relatively minimal investment. For example, an investor who bought shares of a stock that was trading for 50 cents would only need the stock to rise to 75 cents to realize a 50% profit. Some investors also love by the idea that the low cost of entry allows them to buy a large quantity of shares, further increasing their potential reward.

Many people who dabble in penny stocks are speculators, even gamblers. They are attracted to the potential reward of these stocks. They are driven by technical signals more than fundamental analysis.

What are the Risks of Investing in Penny Stocks?

All penny stock companies have some level of risk; otherwise, they would draw the attention of institutional investors. In which case, their share price would be much higher. But why are they risky? There are two primary reasons:

The Company is Not Financially Healthy - First, they are usually highly leveraged and in some cases may even be in bankruptcy. Second, they generally have a small market cap, which means the value of their outstanding shares is low. These companies can offer the potential for sensational growth, but also increase investor risk.

Think about the fundamentals that many institutional investors look for when investing in a company.

  • What is the company’s debt-to-income ratio (i.e. do they have liquidity)?
  • Do they have growing revenue and earnings?
  • Do they have a competitive advantage in the marketplace and/or a moat that keeps competitors away?

Almost by definition, a company whose stock trades as a penny stock will fall short on the first two points. And on the last one, they may have a product that promises a competitive benefit, but for whatever reason it may not be seeded in the market yet.

Good examples of this are biotech companies. These companies may be working potentially breakthrough drugs and therapeutics. However, these companies are subject to strict regulations and must go through a series of clinical trials before turning a profit or even beginning to deliver revenue.

Potential for Fraud - However, any time investors put their money into a volatile investment, there is a high degree of risk. What can make penny stocks riskier is the potential for fraud. This can manifest itself in many forms.

An investor may learn about a company from a newsletter that promises meteoric gains. These newsletters can appear very credible. However, if you read the disclaimers, you’ll find that in many cases, the company was paying the newsletter editor for their endorsement. This should be a gigantic red flag for you because if a company was a legitimately good investment, it wouldn’t need to pay to get an endorsement.

How Can Investors Find Penny Stocks?

There are penny stocks listed on the major exchanges (i.e. Nasdaq, NYSE). To be listed on one of the major exchanges, companies have to file with the Securities and Exchange Commission (SEC) and meet all their minimum filing requirements. While this can give you confidence that the company is legitimate, the fact that they are regulated removes some of the speculative nature of these stocks.

And it’s their speculative nature that makes these stocks appealing to many investors. However, “let the buyer beware” is very applicable when you look beyond the major exchanges to find a penny stock to invest in.

Penny stocks are primarily listed in two places: the Pink Sheets and the Over-the-Counter Bulletin Board (OTCBB).  The pink sheets are a compilation of daily publications by the National Quotation Bureau. The companies listed on the pink sheets do not have to file with the SEC and do not need to meet minimum filing requirements, such as submitting a recent financial report.

The penny stocks that are found on the OTCBB are still not listed on any of the major exchanges, but they do have to meet some minimum requirements. All of this means that you, as an investor, will have a lack of information. And when it comes to deciding where to invest your money, information is power.

What is the Best Way to Make Money in Penny Stocks?

Despite their inherently risky nature, you can make money in penny stocks. Like investing in any asset class, investors can take simple steps to minimize risk.

Limit Exposure - Most experts say an investor’s exposure to penny stocks should be no more than 5-10 percent of their portfolio. These same experts suggest, as a best practice, they limit their exposure to any individual penny stock to 1 or 2 percent of your portfolio. This reinforces a fundamental point that investors shouldn’t invest any more money in an asset class than they are comfortable losing.

Think of Penny Stocks as Short-Term Investments – If an investor profits off of a penny stock, they should look to sell and invest that money into their long-term investments. This will help to avoid losses and keep their exposure to penny stocks at a comfortable level.

Buy Penny Stocks With High Liquidity – This helps to ensure that investors can easily trade these stocks. One way to do this is to look at the average daily trading volume. Since it’s possible to own a large number of shares, it’s important to pick stocks that allow investors to sell a large number of these shares if necessary. In some cases, if the volume of a stock is only 1,500 shares a day and an investor owns over 15,000 shares, that means there aren’t enough buyers to get out of a position quickly.

Avoid Special Fees or Volume Restrictions -  Since investors will be looking to trade these stocks rather quickly, they should use a trading platform that is not going to charge special fees or put in volume restrictions. Essentially, investors need to be able to trade these stocks just like any other common stock.

Trade a Watch List Before Committing Real Dollars - An old-school tip that can help investors decide if a stock is worth your risk, particular for beginners, is to consider paper trading. This is a very simple concept where investors invest an imaginary amount of money and then track your trades without exposing actual money. This helps investors see how quickly a stock is moving and how much volume is changing hands. Many investment platforms make it easy to track your watch list.

Perform Due Diligence - It may be tempting to invest in the latest “hot stock or industry”. The penny stock industry is littered with companies that advertise the potential to make money in oil, gas, gold and other precious metals. However, if information about a company is not readily available, or if a company seems reluctant to provide that information, then it’s a sign to look for another investment.

Another good mantra to remember with penny stocks is to focus on companies where you may have some interest and/or expertise. After all, if you are a programmer, you will be much more likely to separate a tech guru’s hype from real innovation.

There are many good stock screening services available to help you find potential penny stock companies. This should not be the extent of your research, but it could help you create a quick short list in an industry that you can then individually research. Considering there are, literally hundreds of penny stock companies, having a tool that can help you uncover potential candidates can help focus your efforts.

The Last Word on Penny Stocks

While no investment is without risks, penny stocks are particularly risky investments. To begin with, it can be difficult to understand the real value of a penny stock company. Is this a company that has a realistic opportunity to get a product to market at scale? Is this an established company that is going through a difficult time?

At the depth of the financial crisis in 2009, there were several companies who had drifted down to the level of penny stocks. In some cases, you can find one of these companies and snap them up when they are going through a rough cycle. On the other end, you may be looking at startup companies that are looking for investment capital with the promise of a high return on your investment. In some cases, unfortunately, the promise is more hype than hope and you can quickly lose your entire investment.

To invest in penny stocks, you should remember that if it seems too good to be true, it usually is. However, does that mean you should stay away from penny stocks? Not necessarily. If you limit your exposure to penny stocks, apply the same principles you would apply to your other investments, and have both the time and the ability to move quickly in and out of your trades, there can be the potential to make money.

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