### Question
How does SECURITIES EXCHANGES define penny stock?


### Answer
Under *15 U.S.C. § 78c*, **penny stock** is defined as:

> 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**

