The description for this "Stocks" forum states: "Discuss specifc companies listed on the major exchanges. No penny stocks!" I'm teaching my 15-year-old son about investing on the stock markets. In one lesson plan, I wrote, "penny stocks, which have a share price under $2.00 (or under $5.00 or under $10.00, depending upon whichever "expert" is giving you the definition)." What's the definition of "penny stock" on Elite Trader?
Rather than complex ever-changing formulas that require time consuming and tough to research data we keep it simple and clear so everyone knows where we stand. Here's the rules -- any stock (not OTCBB or Pink Sheets) can be discussed that meets at least one of the following two criteria: 1. It trades above $5.... or 2. It has at least 1,000,000 shares of average daily volume. If a stock does not trade above $5 and does not have an average daily volume of at least 1,000,000 shares then for our purposes it's a penny stock and we don't want it discussed at ET. There are plenty of sites that cater to penny stocks and we request that you take such posts to one of them. Thanks.
Magna: Thank you very much for your explicit, definitive answer. I will follow your standards **religiously**. (However, if I screw up and post a message about a "penny stock", please be gentle because, as I wrote in my son's lesson plan: "It is very important to know the names of these markets (NYSE, AMEX, NASDAQ, OTC Pink Sheets / Bulletin Board)...In Daddyâs portfolio, I have shares of companies from all of these markets.") I've never had the opportunity to discuss this topic with the administrator/moderator of a forum. Can we continue our discussion a little further? What is the ultimate reason that you disallow posts about "penny stocks"? What I would like to hear from you... "If a member of our forum loses money on a penny stock that was discussed on our forum, we can be sued in court." What I hope **not** to hear from you... "Penny stocks are susceptible to manipulation" "We care about our members, and we don't want them to lose money." [Note: I am violating one of my personal rules by telling you what I want/don't want to hear. I try to teach my family, "When you go into a store, don't ask 'Are these shoes made from leather?' because you give away what you're looking for. Ask instead, 'What are these shoes made from?'."]
I was a stock broker and we used to have the deff. pegged at under $5 in 1987, with inflation etc I would say under $10 is a penny (but not really practically a penny is under a buck if you asked me......
mike007 and SCNinvestor, Thank you very much for your replies. For the sake of stirring up the discussion a little bit... There are only 14 companies on the Prague Stock Exchange, including: Komercni Banka (The second largest bank) Telefonica O2 Czech Republic (One of the largest telephone companies and a subsidiary of the Spanish telephone company Telefonica) Zentiva NV (A large generic pharmaceuticals company and currently a takeover target by several important companies such as Sanofi-Aventis) Ceske Energeticke Zavody (THE electric company) Needless to say, they are four of the strongest companies in the Czech Republic (well, Zentiva is a Slovak company). I do NOT own any shares in these companies (not my type of investment), but they all trade on a U.S. market. You can guess what's coming, can't you? They trade on the Pink Sheets.