BMA Gyaan- What are Penny Stocks?

A stock that trades at a relatively low price and market capitalization, usually outside of the major market exchanges. These types of stocks are generally considered to be highly speculative and high risk because of their lack of liquidity, large bid-ask spreads, small capitalization and limited following and disclosure. They will often trade over the counter through the Over-The-Counter Bulletin Board (OTCBB) and pink sheets.