A stock that typically sells for less than $5 per share (or in some cases, less than $1 per share) is called a(n) _______ stock.

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Quizplus · Accepted Answer

A stock that typically sells for less than $5 per share (or in some cases, less than $1 per share) is called a penny stock. None of the other options have the same definition as a penny stock. Blue chip stocks are typically large, well-established companies with a history of stable earnings and dividends. Income stocks are generally known for their above-average dividend yields. Micro-cap stocks have a lower market capitalization than small-cap stocks, and midcap stocks have a higher market cap than both small-cap and micro-cap stocks.

A Stock That Typically Sells for Less Than $5 Per