### Question
What is the definition of penny stock?


### Answer
The definition of **penny stock** is as follows in *15 U.S.C. § 78c*:

> any equity security other than a security that is—


(i) registered or approved for registration and traded on a national securities exchange that meets such criteria as the Commission shall prescribe by rule or regulation for purposes of this paragraph

#### Citation:
  - *15 U.S.C. § 78c*
  - Heading: **CHAPTER 2A-SECURITIES AND TRUST INDENTURES > SUBCHAPTER III-TRUST INDENTURES**

