The number of U.S.-listed stocks trading below $5 is about 1,200 to 1,500, based on recent stock-screener snapshots. The range is an estimate, not a permanent market total. For comparison, an OTC Markets report cited below counted more than 12,300 securities at the end of Q2 2026, including many securities that are not penny stocks.
The total changes as share prices move, companies are listed or delisted, and screeners apply different filters. The answer also depends on whether you mean all U.S. stocks below $5, OTC securities, or penny stocks under the SEC's regulatory definition.
Penny Stocks at a Glance
| Counting method | Approximate number | What it means |
|---|---|---|
| Broad U.S. stocks under $5 | 1,200 to 1,500 | A practical estimate from stock screens |
| Investing.com penny-stock screen | 1,196 results | Includes Nasdaq, NYSE and OTC securities |
| PennyStock.Ninja under-$5 list | 1,459 securities | Includes NYSE, Nasdaq and OTC securities |
| SEC-defined penny stocks | No fixed public total | The legal definition includes specific exclusions |
The cited Investing.com screen showed 1,196 penny-stock results, while PennyStock.Ninja showed 1,459 U.S. securities trading below $5. The difference comes from the securities and filters each platform includes. One may count warrants, preferred shares or inactive securities, while another may apply liquidity or exchange filters.
What Qualifies as a Penny Stock?
Under U.S. securities rules, penny-stock requirements generally apply to equity securities priced below $5 per share, subject to specific exemptions. Some exchange-listed and reported securities are excluded. Securities issued by companies that meet certain financial requirements can also fall outside the definition.
A stock can therefore appear on a standard "stocks under $5" screen without meeting the SEC's legal definition of a penny stock. A low-priced Nasdaq or NYSE company may qualify for an exclusion under SEC Rule 3a51-1.
Why the Count Changes
The number of stocks below $5 changes for several reasons:
- A share price can move above or below the $5 threshold during the trading day.
- Companies can be newly listed, suspended or delisted.
- Some screeners include OTC securities, while others focus on exchange-listed stocks.
- Databases may include warrants, rights, units, preferred shares or ADRs.
- A screener may require minimum trading volume, while another may include inactive securities.
That makes 1,200 to 1,500 a useful estimate for broad U.S. stock screens, rather than a definitive count under SEC rules.
Are All OTC Stocks Penny Stocks?
No. OTC Markets reported more than 12,300 actively traded securities across its markets at the end of Q2 2026. That figure included international securities, ADRs, SEC-reporting companies and businesses with market capitalizations above $1 billion. The OTC market is therefore much larger than the penny-stock market.
FINRA states that penny stocks and microcap securities are primarily traded over the counter. "OTC stock" and "penny stock" still refer to different groups of securities.
How Investors Can Count Penny Stocks
To build a more useful penny-stock list, set the criteria before running a screen:
- Set the maximum share price below $5.
- Select the markets you want to include: Nasdaq, NYSE, NYSE American or OTC Markets.
- Remove warrants, rights, units and preferred securities if you only want common stocks.
- Set a minimum average-volume requirement to filter out hard-to-trade securities.
- Review financial filings, share dilution, reverse-split history and bid-ask spreads.
Penny stocks carry substantial risk. The SEC and FINRA warn that investors may face low liquidity, sharp price swings, limited public information and a higher risk of manipulation or fraud.
Bottom line: A broad screen will usually show about 1,200 to 1,500 U.S. stocks trading below $5, but the result depends on the database, security types and filters used. The SEC's legal penny-stock category does not have one fixed public count.