are there penny stocks on nasdaq
Penny stocks on NASDAQ
are there penny stocks on nasdaq? Yes — many securities listed on the NASDAQ trade at low per‑share prices and are commonly referred to as penny stocks. This article explains what market participants and regulators mean by “penny stock,” how NASDAQ’s listing and continued‑listing rules affect low‑priced issuers, how to locate NASDAQ penny stocks with screeners, the specific trading and fraud risks involved, and practical steps for due diligence and risk management. You will also find pointers to public lists, monitoring tools and Bitget features that help track price and volume activity.
As of 2026-01-17, according to Benzinga and Yahoo Finance screeners, hundreds of NASDAQ‑listed tickers trade below $5 per share and a subset trade under $1, underlining the ongoing presence of low‑priced names on the exchange.
Definition and regulatory meaning of "penny stock"
In everyday market language, “penny stock” typically describes an equity with a low absolute share price — commonly under $5 per share. Traders and retail investors use price thresholds like $5, $2 or $1 when screening.
Regulators use a narrower, rules‑based definition. The U.S. Securities and Exchange Commission’s penny stock rules (including Rule 3a51‑1) and related broker‑dealer suitability and disclosure obligations define a “penny stock” for purposes of additional protections and paperwork. Under these regulations, a security may be classified as a penny stock based on price, market capitalization, and whether it is listed on an exchange or traded over‑the‑counter (OTC). The regulatory classification affects required disclosures, suitability assessments and certain restrictions on broker handling of transactions.
Key contrasts:
- Market usage: price‑based filters (e.g., stocks trading under $5). These are convenient for screening and strategy design.
- Regulatory usage: rule‑based tests that trigger broker obligations and specialized disclosure for retail customers.
Because definitions differ, the same security might be called a penny stock by traders while having different regulatory treatment depending on listing venue and reporting status.
NASDAQ listing structure and price rules
NASDAQ is organized into market tiers (Global Select Market, Global Market, Capital Market), each with listing and continued‑listing standards. These tiers have quantitative and qualitative requirements that influence whether low‑priced or microcap companies can list and remain on the exchange.
Minimum bid price and delisting procedures
NASDAQ’s minimum bid price requirement is a central rule for low‑priced shares. A common threshold for continued listing is $1.00 per share. If a company’s closing bid price remains below the minimum for a prescribed evaluation period, NASDAQ typically issues a deficiency notice and provides a cure period during which the company may regain compliance — for example, by effecting a reverse stock split to raise the per‑share price above $1. If compliance is not achieved within the cure period, the company may face delisting.
The delisting process is structured: notice → cure period or plan of compliance → potential hearing → final determination. Enforcement timing and allowed cure mechanisms can vary by market tier and company circumstances.
Other listing standards impacting micro‑ and nano‑cap companies
Beyond minimum price, NASDAQ requires certain levels of market value, shareholders’ equity, operating history, number of publicly held shares and holders, and corporate governance standards. These quantitative tests mean that many very small or distressed firms cannot obtain or maintain NASDAQ listing, whereas microcap issuers that meet baseline metrics can remain listed even with low absolute share prices. Listing standards create a spectrum of oversight: exchange‑listed names generally face higher disclosure and governance requirements than OTC‑traded firms.
Prevalence — Are there penny stocks on NASDAQ?
Short answer: Yes. Many NASDAQ‑listed companies trade under $5 per share and a significant number trade under $1. The exchange includes newly listed growth companies, small cap and microcap issuers, turnaround stories, and distressed names — all of which can trade at low prices.
Examples and time sensitivity
Public penny‑stock aggregators and screeners regularly publish NASDAQ lists showing tickers below price thresholds. Examples of typical sources that snapshot NASDAQ penny stocks include StockAnalysis, Penny‑Stock.org, Stock‑Screener, Benzinga and Yahoo Finance. These sources are updated frequently; therefore, any example tickers are time‑sensitive and require a snapshot date.
As of 2026-01-17, according to a combined look at public screeners (Benzinga and Yahoo Finance), hundreds of NASDAQ tickers were trading below $5, with dozens under $1 and many under $2; daily traded volume varies widely by ticker and can range from thousands to millions of shares depending on activity and news. Specific tickers and prices change intraday — always verify current quotes before taking action.
How to find NASDAQ penny stocks (tools and lists)
There are established ways to identify NASDAQ penny stocks using screeners, exchanges’ own lists, and aggregators. Typical public and commercial tools include dedicated penny‑stock pages, general stock screeners with exchange filters, and news/most‑active lists.
Common data sources and screeners:
- StockAnalysis and Stock‑Screener: allow filtering by exchange (NASDAQ), price thresholds (under $5/$2/$1), market cap and average volume.
- Penny‑Stock.org and AllPennyStocks: aggregate lists of low‑priced names by exchange and provide snapshots.
- Benzinga and Yahoo Finance: maintain most‑active gainers/losers and custom screeners with exchange filters.
In addition to public screeners, paid market data providers and trading platforms offer real‑time filters, watchlists and alerts. Bitget’s market tools and watchlists can help monitor specific NASDAQ tickers and volume surges.
Screening filters and liquidity/volume criteria
When screening, combine price filters with liquidity filters such as average daily volume, bid‑ask spread or market capitalization. Common practical filters include:
- price < $5, < $2 or < $1 (as needed)
- average daily volume > 100k or > 500k shares to ensure tradability
- market cap thresholds to separate microcap from nano‑cap
- exchange = NASDAQ to restrict to listed names
Liquidity filters matter because thinly traded penny stocks can have wide spreads and severe slippage, making execution expensive or unreliable.
Alerts and monitoring services
For active monitoring, use alerts (email/SMS/push/push webhook) for price moves, volume spikes or news releases. Many screeners and trading platforms support watchlists with threshold alerts. Bitget users can set up watchlists and notifications to track NASDAQ penny‑price behavior alongside on‑exchange and off‑exchange market data.
Characteristics and common risks of NASDAQ penny stocks
Low‑priced NASDAQ stocks typically share several characteristics: small market capitalizations, higher percentage volatility, lower analyst coverage, limited liquidity, and sometimes thin public float. These features create both opportunity and risk.
- Price volatility: small absolute price moves can translate into large percentage gains or losses.
- Liquidity and spreads: thin trading leads to wide bid‑ask spreads and execution slippage.
- Limited public information: fewer analysts and less media coverage increase information asymmetry.
- Susceptibility to manipulation: low float and thin liquidity make some penny stocks vulnerable to pump‑and‑dump schemes.
Market microstructure issues (liquidity, spreads, slippage)
Practical trading challenges include:
- wide bid‑ask spreads that eat into returns;
- slippage where market orders execute at substantially worse prices than expected;
- partial fills for limit orders when volume at a given price level is small;
- sudden price gaps on news or after hours.
Using limit orders, monitoring depth‑of‑book, and restricting position size relative to daily volume helps mitigate these issues.
Fraud, thin disclosure and information asymmetry
Penny stocks—especially those trading OTC—have historically been associated with pump‑and‑dump campaigns, paid promotions and misleading claims. Even NASDAQ‑listed low‑priced issuers can suffer from limited coverage and occasional questionable disclosure practices. Investors should be alert for sudden promotional activity, unexplained volume spikes, and press releases that lack supporting detail.
Regulatory protections and broker requirements
Broker‑dealer obligations differ depending on whether a security is exchange‑listed or OTC. For securities that meet the regulatory definition of a penny stock, brokers must comply with suitability requirements, provide additional disclosures, and secure written statements from retail customers acknowledging risks before effecting certain trades. These rules are intended to protect retail investors from unsuitable or risky penny‑stock transactions.
Differences between exchange‑listed penny stocks and OTC/pink‑sheet penny stocks
- Exchange‑listed penny stocks: subject to NASDAQ listing standards, regular SEC reporting (Form 10‑K/10‑Q/8‑K), and higher governance and oversight. They generally have more transparent financial reporting and regulatory scrutiny.
- OTC/pink‑sheet penny stocks: often have limited reporting requirements, less oversight and higher fraud risk; price discovery and liquidity are typically weaker.
While NASDAQ listing gives additional investor protections and transparency, it does not eliminate the inherent risks of low‑priced, small‑cap equities.
Trading and investing considerations
Whether trading short‑term or evaluating a longer hold, apply disciplined rules and risk controls.
Practical guidance:
- position sizing: limit any single penny stock position to a small percentage of capital to control downside risk;
- order types: prefer limit orders to avoid paying wide spreads; use time‑in‑force settings appropriately;
- stop orders: consider stop‑loss limits but be aware of gaps that can make stops execute at worse prices;
- due diligence: read SEC filings, auditor statements, business model disclosures and recent corporate actions.
Research and due diligence checklist
Key items to review before investing in a NASDAQ penny stock:
- SEC filings: 10‑K, 10‑Q and 8‑K for financials, risks and recent developments;
- auditor opinions: note any qualifications or going‑concern language;
- revenue and profitability trends: verify whether revenue is recurring or one‑time;
- cash runway and debt levels: assess whether the company can fund operations without dilutive financing;
- insider ownership and recent insider transactions: strong insider ownership can indicate alignment, but heavy insider selling raises red flags;
- float and outstanding shares: small float amplifies volatility;
- recent news and corporate actions: mergers, reverse splits, delist notices or management changes matter.
Risk management and strategy ideas (short‑term trading vs. long‑term investing)
- Short‑term traders often focus on volume, technical patterns and momentum, using strict stop levels to limit losses.
- Long‑term investors require high conviction based on fundamentals, management quality and a credible path to sustainable growth. Long holds in penny stocks are rare because most low‑priced firms face structural challenges.
Remember: the presence of a NASDAQ listing may improve disclosure and liquidity compared with OTC alternatives, but investment risk remains elevated.
Market data, sample lists and where to follow updates
Publicly available aggregators and screeners maintain lists of NASDAQ penny stocks. Common sources include StockAnalysis, Penny‑Stock.org, Stock‑Screener, Benzinga, Yahoo Finance, AllPennyStocks and specialized penny‑stock pages. These lists are snapshots and should be interpreted with the context of date, volume and recent news.
How to interpret curated lists
Curated “hot penny stocks” or “top gainers” lists are snapshots that show recent price or volume moves. They are not investment recommendations. Interpret them with caution:
- check average daily volume to ensure tradability;
- review the catalyst for the move (news, earnings, promotional activity);
- confirm SEC filings and company communications for material accuracy.
Bitget users can create watchlists of NASDAQ tickers, set alerts for price and volume thresholds, and pair market monitoring with due‑diligence workflows.
Historical context and trends
Penny‑stock activity on NASDAQ has evolved with broader market cycles, regulatory changes and retail participation. In bull markets, more small companies list and trade at higher prices; in downturns, delisting risk and distress increase. Social media and retail trading platforms have sometimes amplified short‑term interest in low‑priced names, producing volatile spikes in volume and price.
Regulatory focus on disclosure and market integrity has reduced some classic abuses, but promotional campaigns and manipulation risks persist in segments with thin liquidity.
Common misconceptions
Addressing frequent misunderstandings:
- “Penny stock” is not an intrinsic value judgment. A low share price alone does not mean the company is cheap on a valuation basis; look at market capitalization and fundamentals.
- Being listed on NASDAQ does not remove risk. Exchange listing implies higher reporting standards than OTC, but operational, financial and liquidity risks remain.
- Low absolute price ≠ easy profit. Volatility can produce large losses as quickly as gains.
See also
- OTC Markets and pink sheets
- SEC penny‑stock rules (Rule 3a51‑1) and broker suitability requirements
- NASDAQ listing requirements and continued‑listing standards
- Microcap investing and risk management
- Stock screeners and market scanners
References and further reading
- StockAnalysis — penny‑stocks list and screeners (public snapshot providers)
- Penny‑Stock.org — NASDAQ penny stock listings and snapshots
- Stock‑Screener — NASDAQ penny stock filters and screening tools
- Benzinga — coverage of NASDAQ penny stock movers and summaries
- Yahoo Finance — penny stock and most‑active screeners
- AllPennyStocks and related aggregators that compile low‑priced lists
As of 2026-01-17, public screeners (Benzinga and Yahoo Finance) showed that hundreds of NASDAQ‑listed tickers traded below $5 and dozens under $1; daily trading volume and market caps vary widely across these names.
Sources: retained market screeners and penny‑stock aggregators (StockAnalysis, Stock‑Screener, Penny‑Stock.org, Benzinga, Yahoo Finance, AllPennyStocks).
Notes for editors
- Any explicit list of NASDAQ penny stocks must include a snapshot date and be updated frequently; prices and tickers change intraday.
- Distinguish between colloquial price‑based definitions (e.g., under $5) and the SEC/broker regulatory definition used for suitability and disclosure rules.
- Avoid naming or endorsing other centralized trading platforms; highlight Bitget as the preferred exchange for readers here and Bitget Wallet for on‑chain custody when applicable.
Practical next steps and Bitget features
To monitor NASDAQ penny stocks and manage risks, consider these steps:
- Use a screener to find NASDAQ tickers under your price threshold and add liquidity filters (average volume and market cap).
- Create watchlists and set alerts for price movement and volume spikes.
- Use limit orders and small position sizes to reduce slippage and exposure.
Bitget provides watchlist tools, alerts and market data features that help track NASDAQ activity. For custody and broader asset management, Bitget Wallet is suggested for users looking to integrate on‑chain holdings and portfolio oversight.
Further exploration: check company SEC filings (EDGAR) and NASDAQ notices before making any trading decisions. Remember this guide is informational, not investment advice.
