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[Investor Education] 3 Questions about Penny Stocks

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Moomoo Lily wrote a column · Jul 13, 2022 07:21
Hello, mooers! Hey
Today, Lily wants to share a type of stock with you—penny stock!
[Investor Education] 3 Questions about Penny Stocks
What is a penny stock?Shocked
1. Penny stock is a type of stock. Its trading process, trading hours, and order type are the same as those of common stock.
2. In the US stock market, penny stocks typically refer to stocks of small-cap and listed companies. According to Futu, US stocks priced below $5 per share are penny stocks.
3. In the HK stock market, penny stocks refer to stocks with relatively low prices. According to Futu, HK stocks priced below HK$1 are penny stocks.
What are the features of penny stocks?Go For lt
1. Intraday trading prices may be volatile.
2. Generally, the volume is low, and liquidity is poor.
3. The company has a lower market cap, receives less market attention, and discloses limited information to the public.
For retail investors, what are the risks of penny stocks?Thinking Face
1. Prices may be subject to manipulation, which is not novice-friendly.
2. The stocks may be difficult to sell once you own them.
3. The risk of being delisted may be greater than other stocks
Reminder: Due to the relatively high risks of penny stocks, please confirm the risks before trading penny stocks for the first time on Futu.
Disclaimer: Moomoo Technologies Inc. is providing this content for information and educational use only. Read more
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