Where Do Penny Stocks Trade?

where-penny-stock-trade

Where Do Penny Stocks Trade?
Most penny stocks trade over-the-counter where they are quoted through the Over-the-Counter Bulletin Board (OTCBB) and Pink Sheets (now the OTC Markets).

Penny stocks can also be found trading on a variety of exchanges, such as NASDAQ, NYSE, and AMEX.

The NASDAQ and NYSE are the two largest exchanges and features stocks with a market cap that range from small to large. Stocks that trade on these two exchanges are required to meet a certain standard and disclose their financial details about their company.

While, stocks that trade on OTC or Pink Sheets have very little or no requirements to be listed and feature stocks with small, micro or nano-cap stocks. It also features stocks that may have once been listed on the NASDAQ or NYSE and didn’t comply with the exchanges listing requirements or maybe be stocks on the brink of bankruptcy.

You can find penny stocks that trade on the following:

  • NASDAQ – Has a number of penny stocks, especially technology, healthcare, and biotech stocks.
  • NYSE AMEX – Has a decent number of penny stocks listed but not as many as the NASDAQ
  • OTCBB – Features a variety of penny stocks. Many trading between $0.01 & $1 per share.
  • OTC Markets (formerly Pink Sheets) This market is divided into 3 tiers:
  1. The OTCQB is for companies registered with the SEC
  2. The OTCQX is for companies who aren’t registered with the SEC but do report their audited financials to the OTC Markets.
  3. The OTC Pink Markets is for companies who may or may not disclose any information to the public. These are the most speculative of the three tiers.