Penny stocks generally have market caps under $500M, trade under $5.00 per share and are considered speculative, particularly those that trade on low volumes over the counter. "

In the U.S. financial markets, the term penny stock commonly refers
to any stock trading outside one of the major exchanges (NYSE, NASDAQ, or AMEX), and is often considered pejorative.

However, the official SEC definition of a penny stock is a low-priced, speculative security of a very small company, regardless of market capitalization or whether it trades on a securitized exchange (like NYSE or NASDAQ) or an "over the counter" listing service, such as
the OTCBB or Pink Sheets.

The terms penny stock, microcap stock, small caps, and nano caps are sometimes all used interchangeably, however per the SEC
definition, penny stock status is determined by share price, not
market capitalization or listing service.