Series 24: Penny Stock Rules (SEC Section 3, 15g Rules)

Penny Stock Rules (SEC Section 3, 15g Rules)

Penny stocks are typically low-priced (below $5), thinly traded securities. They are not listed on NASDAQ or any other national exchange. They are often quoted on the OTCBB or Pink Sheets. Because investing in penny stocks can be risky, the SEC has put in place specific rules that broker-dealers must follow before selling penny stocks.