$5 there is no "limit" on stocks
If the stock goes above $5, those bought the stock at a lower price, have an unrealized profit
There's no "measurement" they are not re-named, and do not have to be "merged".
Stocks are considered "penny stocks" if they are selling below $5 a share this name, there's nothing special about this except, such stocks are not marginable and when purchased must be paid in full. Since they can not be used for margins they have no loan value and therefore can not be used as collateral for loan in the banking world
You're trying to read into something that does not exist. A stock that sells for less than $5 is a penny stock, if it sells above $5 it is not a penny stock . )period)
Generally, $5 is considered to be a "legitimate" stock. Mutual funds won't buy stocks under $5 per share, so that threshold opens up the stock to institutional investors.
I know you think you have a great stock, but honestly the odds are against it. A penny stock that has gone up for 6 weeks would be a stock that I would get rid of soon, because it will be back down where you bought it or less by summer at the latest.
This is a really classic penny stock post. "I know this stock that will be rising rapidly in the next few years".. Yeah, sure you do. Followed by " I thought some type of measurement has/had to be done. Like they had to rename the stock and merge or something like that. " which means you don't have the faintest clue how stocks work.
In a perfect world, cactusgene's answer would be lal there is to it. The stock would become more liquid and thus gain ground rapidly from $5 as a liquidity premium gets added to the stock. In the real world of penny stocks, there is huge resistance to this happening because every penny stock out there is loaded up on dilutive securities and a BoD that is as independent as the founder is from his brother in law. All retained earnings go out in executive compensation and any equity gains are soaked up by stock options and the brother in law's blank check preferred stock and other slimy securities.
But idiots who don't even know what dilution means have their hot tips....
Then it is not considered a penny stock anymore and therefore subject to less trading restrictions.
What happens when a Penny Stock raises above 5$?
5$ is apparently the limit for Penny Stocks.
What happens when the stock raises above 5$?
Please explain in detail. I have more than a few in a particular stock that will be raising quickly in the next few years or so.
