Every day, the financial experts at Benzinga identify the best stocks to buy now under $5. including the major swings in percent a small dollar/cent move can create, decreased liquidity when And those blades can be even sharper in the case of tech stocks. On the one hand, while the actual dollar price of a stock typically doesn’t tell you much about it (a $50 stock can be every bit The Definition of Penny Stocks. While there is some variation, most consider penny stocks as anything trading outside major market exchanges under $5 USD per share. Traditionally, anything under $1 USD is a penny stock. Penny stocks are an extremely high-risk investment, and most investors consider them to be incredibly speculative.