Penny stocks , also known as cent stocks in some countries, are common shares of small public companies that trade at less than $1.00. [1] Penny stocks are considered to be highly speculative and high risk, but have a large potential for profit. Penny stocks are often traded over-the-counter on the OTC Bulletin Board , Pink Sheets , and other institutions such as NASDAQ

http://en.wikipedia.org/wiki/Penny_stock