Master account and Penny shares: Difference between pages

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imported>Doug Williamson
(Remove non-relevant paragraph.)
 
imported>Doug Williamson
(Create page - source - FCA - https://www.fca.org.uk/consumers/penny-shares)
 
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A bank account used in cash concentration to fund zero balance accounts automatically.
1. ''Investment - investment strategies - equities - listed equities.''


More specifically an account in a cash pooling structure used to fund zero/target/threshold balance accounts automatically or concentrate funds from participating accounts automatically.
An ordinary equity share with a very low current market price.


The master account may be interest-bearing.  
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.




''Also known as central account or concentration account.''
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 ==
* [[Cash concentration]]
* [[Equity]]
* [[Cash pool]]
* [[Financial Conduct Authority]] (FCA)
* [[Zero balance account]]
* [[Ordinary shares]]
* [[Legal implications of cash pooling structures]]
* [[Penny]]
* [[Penny stock]]
* [[Preference shares]]
* [[Share]]
* [[Stock]]
 
 
==External link==
*[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:Cash_management]]
[[Category:Accounting,_tax_and_regulation]]
[[Category:The_business_context]]
[[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