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Primer on U.S. Listed Penny Stocks by Serod is a document available to read on EtoBox.

This document provides an abstract and introduction for a research paper that analyzes characteristics and returns of listed penny stocks traded on major US exchanges. The paper finds that penny stocks have high returns, volatility, small size, high book-to-market ratios, high idiosyncratic risk and poor liquidity. Abnormal returns disappear after accounting for an illiquidity factor. However, zero-cost trading strategies based on firm characteristics like size, value and momentum can generate significant p

Author

Serod

Language

EN