Penny pillory are referred to as those instrument of punishment that are not traded on any of the outstanding exchanges (AMEX, NASDAQ, NYSE). They are low-priced, speculative securities from negligible companies customarily listed by an \\"over the counter\\" address list work or introductory municipal offerings (IBO), specified as (OTCBB or Pink Sheets) The pupil saver may find some other status in use that are reciprocal beside \\"penny stock\\", they are: microcap stocks, nano caps and diminutive caps.
These pillory are a bad land and student old-hat investors should be precooked to be unable to find their total investment. The stocks are customarily crowned beneath $500M and are unsound in temper mega those that are traded beneath low volumes in \\"over the counter\\" listings. The Securities and Exchange administrative body puts out a stipulation to those who preference to export in them that \\"Penny pillory may commercial infrequently, which vehicle that it may be thorny to vend these shares past you own them.\\" To add to the misery, they can too be ambitious to get straight rating per allotment.