Non-performing asset and Penny shares: Difference between pages

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imported>Doug Williamson
(Create page. Sources: linked pages and BIS https://www.bis.org/fsi/publ/insights7.pdf)
 
imported>Doug Williamson
(Create page - source - FCA - https://www.fca.org.uk/consumers/penny-shares)
 
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(NPA).  
1. ''Investment - investment strategies - equities - listed equities.''


A loan or bond where the borrower is believed to be likely to default on the principal.
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 ==
== See also ==
* [[Bad debt]]
* [[Equity]]
* [[Bond]]
* [[Financial Conduct Authority]] (FCA)
* [[Default]]
* [[Ordinary shares]]
* [[Forbearance]]
* [[Penny]]
* [[Interest]]
* [[Penny stock]]
* [[Non-performing loan]]
* [[Preference shares]]
* [[Principal]]
* [[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:Accounting,_tax_and_regulation]]
[[Category:Accounting,_tax_and_regulation]]
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[[Category:Corporate_finance]]
[[Category:Corporate_finance]]
[[Category:Investment]]
[[Category:Investment]]
[[Category:Long_term_funding]]
[[Category:Identify_and_assess_risks]]
[[Category:Identify_and_assess_risks]]
[[Category:Manage_risks]]
[[Category:Manage_risks]]

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