You may be like most people when they first hear the term “penny stocks” thrown around by investors or businessmen and women.  Most folks are not sure what penny stocks are, or how to trade penny stocks, for that matter.  Penny stocks are generally stocks that are traded for less than $5 per share.  Also, many of these stocks are traded outside of the New York Stock Exchange, NASDAQ, or AMEX.  There is a certain amount of volatility in trading penny stocks, as they have the potential to gain- or lose- a lot of ground very quickly.  Also, many penny stock companies are little known and hard to find information on.