Penny Stock Simulation – Free stock market game with community trading discussion, player rank, profiles, earnings game.
Prosecutors and the Federal Bureau of Investigation say that fraud is widespread in the penny stock market. even though the penny stock companies are small, the scams that involve them can be for tens of millions of dollars. In the case of many penny stocks, low market price inevitably leads to low market capitalization.
Contrary to their name, penny stocks rarely cost a penny. The SEC considers a penny stock to be pretty much anything under $5. and while there are sub $5 stocks trading on big exchanges like NYSE and NASDAQ, most investors don’t think of these when asked to describe a penny stock.
BREAKING DOWN ‘Penny Stock’ The term penny stock has evolved with the market. In the past, penny stocks were stocks that traded for less than a dollar per share. The SEC, however, has modified the definition to include all shares trading below $5. Most penny stocks don’t trade on the major market exchanges.
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