Shares issued by smaller companies, mainly in the U.S. and Canada, and introduced at extraordinarily low prices – sometimes below one U.S. dollar (low-priced speculative issues of stock trading in the over-the-counter market). With these issues, companies usually finance risky activities, such as the search for raw materials. Accordingly, penny stocks are extremely speculative stocks. – See baby bonds, dingo stocks, secret tip, junk bonds, pyramid, mock price, terror papers, trembling premium. – Cf. 2001 Annual Report of the Federal Supervisory Office for Securities Trading, p. 21 f. (regarding the difficulties in monitoring these stocks), 2007 Annual Report of BaFin, p. 142 (withdrawal of permission of an intermediary of penny stocks), 2008 Annual Report of BaFin, p. 138 (withdrawal of permission), 2009 Annual Report of BaFin, p. 247 (penny stocks are offered by fax at nighttime), and the respective Annual Report of BaFin, chapter “Cross-Sectional Tasks.”
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University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec.
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