Penny stocks

In American economics, penny stocks are common shares of small public companies that trade for less than $5 per share. The U.S. Securities and Exchange Commission (SEC) uses the term "penny stock" to refer to a security, a financial instrument which represents a given financial value, issued by small public companies that trade at less than $5 per share. Prior to the SEC's classification, penny stocks referred to shares that traded for "pennies on the dollar". In countries other than the United States, where stock prices are denoted in local currencies, a US$1.00 value does not have any necessary implication. In China, for example, it is common for initial public offerings of large companies to have an offer price of 10–40 Rmb per share, the equivalent of US$1.50–5.50 per share. For example, Yonz Technology Co. Ltd. raised US$191 million by going public on the Shanghai Stock Exchange in June 2024 at an offer price of 23.35 Rmb per share, the equivalent of a little over US$3.00 per share.