What is a penny stock?

Penny stocks are almost an opposite of a blue chip stock. They are defined as common shares of a public company that trade at low price per share (less than USD 5 or GBP 1).

Penny shares are highly volatile, very risky and certainly not as stable as blue chips. Frequently such companies are new on the market, so investors are mostly interested in penny stocks because of high possible gains in a very short time.

Trading penny stocks

If you want to buy and sell penny stocks, the best way is to use an online trading platform that would allow you to quickly buy or get rid of some stocks. Be aware that although penny stocks seem low in price, it's very easy to start day trading and buying thousands of these high-risk shares.

List of penny stocks

Following penny stocks list was derived from NASDAQ listing. Most active stocks, priced under five dollars. Ordered by Volume. As of January 16, 2013.

NASDAQ Symbol Company Name Price in USD
ZNGA ZYNGA INC 3.54
PLUG PLUG POWER INC 3.55
DCTH DELCATH SYSTEMS INC 0.39
DRYS DRYSHIPS INC 3.99
CHTP CHELSEA THERAPEUTICS INTL LTD 4.7
AMRN AMARIN CP PLC 2.26
RSOL REAL GOODS SOLAR INC 4.33
DNDN DENDREON CP 3.12
GERN GERON CORPORATION (DELAWARE) 4.26
FREE FREESEAS INC 2.11
DVAX DYNAVAX TECHNOLOGIES CP 2
CTIC CELL THERAPEUTICS INC CDT-COM 3.2
RFMD RF MICRO DEVICES INC 4.84
BLDP BALLARD POWER SYSTEMS INC 2.41
FCEL FUELCELL ENERGY INC 1.64
NIHD NII HOLDINGS INC 2.4
GLUU GLU MOBILE INC 3.92
ACHN ACHILLION PHARMACEUTICALS INC 3.98
VICL VICAL INC 1.64
NLST NETLIST INC 1.3
CPST CAPSTONE TURBINE CP 1.59
GTXI GTX INC 2.13
MTSN MATTSON TECHNOLOGY INC 2.94
HSOL HANWHA SOLARONE CO LTD 3.2
UNIS UNILIFE CORP 4.85
PPHM PEREGRINE PHARMACEUTICALS INC 1.7
ZGNX ZOGENIX INC 4.4
NEWL NEWLEAD HOLDINGS LTD 1.38
SQNM SEQUENOM INC 2.72
CDXS CODEXIS INC 1.86
DRRX DURECT CP 2.17
CAMT CAMTEK LTD 4.87
WPCS WPCS INTL INC 1.89
APPY ASPENBIO PHARMA INC 2.79
ATHX ATHERSYS INC 4.03
AMCN AIRMEDIA GROUP INC 2.26
ACLS AXCELIS TECHNOLOGIES INC 2.37
VRNG VRINGO INC 3.25
AEZS AETERNA ZENTARIS INC 1.28
DARA DARA BIOSCIENCES INC 0.76
ATEC ALPHATEC HOLDINGS INC 2.25
ONTY ONCOTHYREON INC 2.24
ZIOP ZIOPHARM ONCOLOGY INC 4.46
IDRA IDERA PHARMACEUTICALS INC 4.44
SLTM SOLTA MEDICAL INC 2.93
EGLE EAGLE BULK SHIPPING INC 4.43
SPRT SUPPORT SOFT INC 3.03
BGMD BG MEDICINE INC 1.28
NSPH NANOSPHERE INC 2.81
ATRS ANTARES PHARMA INC 4.9

Where to find more inspiration

There are many blogs and forums that discuss penny stocks. You can find useful tips for hot stocks, lists of penny stocks or warnings for the worst loosers.