Letter of credit and Penny shares: Difference between pages

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imported>P.F.cowdell@shu.ac.uk
m (Categorise the page)
 
imported>Doug Williamson
(Create page - source - FCA - https://www.fca.org.uk/consumers/penny-shares)
 
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(LC).  
1. ''Investment - investment strategies - equities - listed equities.''


A promise document issued by a bank or another issuer to a third party to make a payment on behalf of a customer in accordance with specified conditions.  
An ordinary equity share with a very low current market price.


Letters of credit are frequently used in international trade to make funds available in a foreign location.
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 ==
== See also ==
* [[Advising bank]]
* [[Equity]]
* [[Bank payment obligation]]
* [[Financial Conduct Authority]] (FCA)
* [[Clean letter of credit]]
* [[Ordinary shares]]
* [[Commercial risk]]
* [[Penny]]
* [[Condition]]
* [[Penny stock]]
* [[Confirmed letter of credit]]
* [[Preference shares]]
* [[Confirming bank]]
* [[Share]]
* [[Credit]]
* [[Stock]]
* [[Documentary credit]]
* [[Irrevocable letter of credit]]
* [[Issuing bank]]
* [[LOC backed]]
* [[Standby letter of credit]]
* [[Uniform Customs and Practice for Documentary Credits]]




==Other links==
==External link==
[http://www.treasurers.org/node/5279 Letters of credit and supply chain finance, Will Spinney, ACT 2009]
*[https://www.fca.org.uk/consumers/penny-shares Find out why you should be cautious about investing in penny shares or penny stocks - UK Financial Conduct Authority (FCA)]


[[Category:Trade_Finance]]
[[Category:Accounting,_tax_and_regulation]]
[[Category:Credit_Risk]]
[[Category:The_business_context]]
[[Category:Managing_Risk]]
[[Category:Corporate_finance]]
[[Category:Investment]]
[[Category:Identify_and_assess_risks]]
[[Category:Manage_risks]]
[[Category:Risk_frameworks]]
[[Category:Risk_reporting]]
[[Category:Financial_products_and_markets]]

Latest revision as of 16:09, 10 February 2022

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


External link