NYSE Penny Stocks Provide Greater Certainty

NYSE Penny Stocks Provide Greater Certainty

When you hear the term “penny stocks” what do you think? Most don’t naturally think of NYSE penny stocks. The average person usually thinks of very small companies trading on the Pink Sheets or, at the very least, companies traded on the OTC Bulletin Board.

But this is not the case. Penny stocks refer to more than companies that trade on the Pink Sheets and OTC BB. Any company that is trading below $5 per share is considered a penny stock by the SEC (put link here). So you can find NYSE penny stocks, NASDAQ penny stocks and AMEX penny stocks.

Now the number of companies that trade below $5 per share will not be as large on the NYSE. The three major exchanges (NYSE, NASDAQ, AMEX) all have listing requirements that the companies on their exchange must meet. One of those requirements is related to share price. They only allow companies to stay below a specific price for so many days before they will be de-listed. In the instance of the NYSE that price is $2.

I prefer trading penny stocks that can be found on one of the three major exchanges and in particular I prefer NYSE penny stocks. The reason for this is that the exchanges have financial reporting requirements. They require specific accounting standards and require that the companies report their financial condition every quarter. The Pink Sheets could be better termed the Wild, Wild West. You can never be sure of the veracity of the financial statements that are produced by the companies that are listed there.

I prefer the greater certainty provided by the reporting requirements of NYSE penny stocks. Another reason that I prefer to trade stocks that can be found on the NYSE is that it is an indication that the company is a fairly solid company. If you find NYSE stocks trading below $5 then it is most likely an indication that a good company has fallen on difficult times. Now there is a great chance that the company finds themselves in this position due to poor management or through other errors that the company has made. But it also gives a greater level of comfort that they may be able to return to once again being a solidly run company.

So if you are looking for a list of NYSE penny stocks I thought that I would provide you with one. The following list are companies whose primary exchange is the NYSE and whose stock is optionable (there are stock options listed). The list is as of close of trading on December 8, 2010. If you are viewing this post subsequent to that date then some of these companies may now be trading above $5 per share while others not currently on the list might be trading below $5 per share.