Series 7 Exam Question 20: Answer and Explanation

Question: 20

Penny stocks are non-Nasdaq stocks trading at _________ or less.

• A. $0.99
• B. $1
• C. $5
• D. $10

Correct Answer: C

Explanation:

C. Penny stocks are non-Nasdaq stocks that trade at $5 or less. Because of the risk of investing in penny stocks, most customers must receive a penny stock risk disclosure document.