clipped from: www.stocktradingblogs.net In recent years, trading penny stocks has become increasingly popular especially after online penny stock trading was introduced. To those not familiar with the terminology, penny stock trading means trading stocks that cost less than a dollar per share. Sometimes, trading stocks that cost less than $5 per share also falls under this category. Penny stocks are usually from small cap companies. It does not follow, however, that small cap companies only trade penny stocks.