Reaching $0.94 after a recent trading day, shares of TheStreet, Inc. (NASDAQ:TST) have been making headlines in the micro cap world as the price moved 3.30%.
How the stock has been performing recently? Over the past twelve months, TheStreet, Inc. (NASDAQ:TST)‘s stock was 10.59%. Over the last week of the month, it was 6.82%, 10.59% over the last quarter, and 25.33% for the past six months.
Over the past 50 days, TheStreet, Inc. stock was 1.08% off of the high and 25.33% removed from the low. Their 52-Week High and Low are noted here. -18.97% (High), 53.09%, (Low).
Penny stocks are inexpensive, making them attractive to investors who may not have the capital to purchase the more expensive blue-chip shares from large companies. Penny stocks carry a huge profit potential. Because prices for these stocks are so low, even a slight increase in price can be hugely profitable.
Beware, however, because often investors may have trouble finding a decent amount of information about penny stocks. It should be noted that these kinds of stocks tend to be on the new side, with little to no track record that investors can research.
Penny stocks often have poor liquidity, with a lack of market activity, making them a more difficult sell. Low liquidity causes penny stocks to be vulnerable to price manipulation. A shady trader can easily buy large numbers of shares, temporarily driving up the price, creating artificial demand.
Penny stocks are often dismissed as risky investments that rarely pay off. Admittedly, there is truth to this, but with the right tactics and knowledge, it is possible to make a significant amount of profit in penny stocks.
Simply put, a penny stock is one that sells at a low price. Regardless of the name, “penny stocks” usually cost more than a penny, occupying a range of prices at or around $1, though some can cost a fraction of a penny.
Sometimes referred to as “micro-cap” stocks, the Securities & Exchange Commission (SEC) classifies these types of stocks as being $5 or less.
An over-the-counter stock is one that is NOT listed on one of the formal exchanges. Penny stocks often fit this category, though many do not. Over-the-counter stocks are considered to be risky because they aren’t subject to the reporting and listing requirements of the major commodity exchanges.
Penny stocks can be found on NASDAQ or other stock exchanges, though a great many more are not listed there. Most penny stocks are found on the so-called “pink sheets”, i.e., daily publications of over-the-counter shares. They can also be found on the Over-the-Counter Bulletin Board (OTCBB). Commodities traded on the OTCBB do not meet the listing requirements of the NYSE or other exchanges, though they must file financial statements with an appropriate regulator, like the SEC.