### Question
What does penny stock mean?


### Answer
**Penny stock** has the following meaning 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 2B-SECURITIES EXCHANGES**

