ECAI

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

External link

• Find out why you should be cautious about investing in penny shares or penny stocks - UK Financial Conduct Authority (FCA)