Hot Penny Stocks

Penny Stock Concepts

Reference guide to the structural concepts behind penny-stock trading. If you've ever wondered why a stock halted, what dilution actually does to your shares, or how short interest is reported — this is the section.

Fundamentals

What is a Penny Stock? — SEC definition, trading venues, why traders care.
OTC vs Nasdaq Penny Stocks — listing tiers and disclosure differences.
Float and Shares Outstanding — what they mean and why low float matters.
Bid/Ask Spread — the hidden cost of trading penny stocks.

Corporate Actions & Risk

Trading Halts — halt codes, durations, and what they signal.
Dilution — how new share issuance reduces your ownership.
Reverse Stock Split (R/S) — why it usually signals distress.
Toxic Financing — death-spiral convertibles explained.
Pump and Dump Schemes — mechanics, red flags, self-defense.

Short Selling

Short Selling Basics — borrow, sell, cover, risk profile.
Reg SHO and Short Selling Rules — locate, fails-to-deliver, threshold lists.
FINRA Short Interest Reporting — schedule, lag, coverage.

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