Penny shares
1. Investment - investment strategies - equities - listed equities.
An ordinary equity share with a very low current market price.
A common threshold for classifying a share as a penny share in the UK is a maximum current market price of GBP 0.20 = 20 pence 1 per share.
Investing in such shares can be appealing to certain very naive investors, on the basis that the potential for large proportionate gains - for example a doubling of the value per share - could be considered more likely than for a stock with a higher current market price per share.
They are generally very high risk investments, and unsuitable for non-professional investors.
2. Investment - investment strategies - equities.
Shares in very small companies, whose shares may have a very low market value per share.
See also
- Equity
- Financial Conduct Authority (FCA)
- Ordinary shares
- Penny
- Penny stock
- Preference shares
- Share
- Stock
