Basic purpose of this article is to Define and Discuss on Penny Stock Investments. One point which needs to be emphasized when it involves penny stock investments is they pose a considerably better risk than regular shares. The terms “penny stocks” is normally used in an interchangeable manner but we have a technical difference between these two. Penny stocks are classified on such basis as their price while market capitalization is taken into consideration on the subject of micro cap stocks. Good Securities & Exchange Fee or SEC, any stock is regarded as being a penny stock in the event its price is below $5.