Penny Stock Trading - The Full Guide 2025

Penny shares, also known as cent shares or penny stocks, are securities with a value of up to $5–$7 per share issued by small companies operating within a specific niche market. There are also transnational corporations that issue penny shares, but these are rather an exception. Penny shares are primarily traded on OTC markets, as they typically do not meet the listing requirements of major stock exchanges.For penny stock investors, these stocks can be compared to venture capital investmen