A penny stock, also known as an OTC (Over-The-Counter) stock, typically refers to a stock that trades for less than $5 per share. These stocks are often extremely high risk but can potentially offer high rewards, requiring buyers to perform thorough due diligence. Penny stocks are usually associated with small companies and lack liquidity, meaning there are few ready buyers in the marketplace. Consequently, investors may find it difficult to sell stock due to the scarcity of buyers. This lack of liquidity can also make it challenging to find a price that accurately reflects the market value. Due to these factors, including wide bid-ask spreads and small company sizes, penny stocks are generally considered highly speculative, meaning investors could lose a significant portion or all of their investment.
Often representing growing companies with limited cash and resources, penny stocks are most suitable for investors with a high tolerance for risk. Typically, penny stocks exhibit higher volatility, which leads to higher potential rewards but also a higher level of inherent risk. Investors may lose their entire investment on a penny stock, or even more than their investment if they buy on margin, borrowing funds from a bank or broker to purchase the shares.
Given the heightened risks associated with penny stocks, investors should take precautions. For instance, having a predetermined stop-loss order before entering a trade can be crucial. A stop-loss order sets a price limit that, once reached, triggers an automatic sale of the securities. Despite the potential for explosive gains, it is essential to maintain realistic expectations and understand that penny stocks are high-risk investments with low trading volumes.
| Ticker | Name | Last Price | Market Cap |
|---|---|---|---|
| SIRI | Sirius XM Holdings Inc. | $2.885 | $11,100,000,000 |
| XHG | XChange TEC.INC | $1.015 | $319,500,000 |
| ADAP | Adaptimmune Therapeutics plc | $1.095 | $279,840,000 |
| BNAI | Brand Engagement Network, Inc. | $3.9599 | $131,950,000 |
| AITX | Artificial Intelligence Technology Solutions Inc. | $0.0071 | $73,260,000 |
| SLNA | Selina Hospitality PLC | $0.0812 | $44,150,000 |
| NVOS | Novo Integrated Sciences, Inc. | $0.9922 | $18,910,000 |
| VERB | Verb Technology Company, Inc. | $0.1633 | $17,080,000 |
| LUCY | Innovative Eyewear, Inc. | $0.9082 | $15,890,000 |
| CISS | C3is Inc. | $1.93 | $11,230,000 |
| DRNK | NOHO, Inc. | $0.0008 | $9,550,000 |
| BURU | Nuburu, Inc. | $0.2101 | $8,100,000 |
| DKSC | Dakshidin Corporation, Inc. | $0.00115 | $5,150,000 |
| GRCU | Global Roundtable Corporation | $0.0002 | $4,850,000 |
| ISPC | iSpecimen Inc. | $0.431 | $4,300,000 |
| FOXO | FOXO Technologies Inc. | $0.419 | $4,230,000 |
| TSOI | Therapeutic Solutions International, Inc. | $0.0009 | $3,810,000 |
| TONR | Tonner-One World Holdings, Inc. | $0.0004 | $2,820,000 |
| ABQQ | AB International Group Corp. | $0.0008 | $1,870,000 |
| TPTW | TPT Global Tech, Inc. | $0.0006 | $1,850,000 |
| EPAZ | Epazz, Inc. | $0.0009 | $1,280,000 |
| IJJP | IJJ Corporation | $0.0005 | $1,060,000 |
| GTVH | Golden Triangle Ventures, Inc. | $0.0014 | $992,210 |
| RDAR | Raadr, Inc. | $0.0003 | $838,950 |
| GRLT | Grillit, Inc. | $0.0002 | $770,770 |
| MSMY | MC Endeavors, Inc. | $0.00106 | $643,200 |
| PDPG | Performance Drink Group, Inc. | $0.0004 | $403,020 |
| NAFS | North America Frac Sand, Inc. | $0.0004 | $336,100 |
| PPCB | Propanc Biopharma, Inc. | $0.0019 | $319,160 |
| VNTH | Nano Mobile Healthcare, Inc. | $0.0002 | $160,730 |
