Penny and Penny shares: Difference between pages

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imported>Doug Williamson
(Update 4th definition.)
 
imported>Doug Williamson
(Create page - source - FCA - https://www.fca.org.uk/consumers/penny-shares)
 
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1.  ''Money - UK.''
1.  ''Investment - investment strategies - equities - listed equities.''


One hundredth of a British pound:
An ordinary equity share with a very low current market price.


= GBP 0.01 
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.


= £0.01


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.


2.  ''Money - dollars - US.''


Informally, one cent, one hundredth of a dollar:
They are generally very high risk investments, and unsuitable for non-professional investors.


= USD 0.01 


= $0.01
2. ''Investment - investment strategies - equities.''


Shares in very small companies, whose shares may have a very low market value per share.


3.  ''Money.''


The smallest unit of a number of other currencies.
== See also ==
* [[Equity]]
* [[Financial Conduct Authority]]  (FCA)
* [[Ordinary shares]]
* [[Penny]]
* [[Penny stock]]
* [[Preference shares]]
* [[Share]]
* [[Stock]]


Often, but not always, one hundredth of the next-largest unit.


==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)]


4.  ''Coins.''
[[Category:Accounting,_tax_and_regulation]]
 
A physical coin representing this value.
 
Plural, ''pennies.''
 
 
== See also ==
* [[Coin]]
* [[Dollar]]
* [[GBP]]
* [[Money]]
* [[Pence]]
* [[Penny stock]]
* [[Pound]]
* [[USD]]
 
[[Category:The_business_context]]
[[Category:The_business_context]]
[[Category:Cash_management]]
[[Category:Corporate_finance]]
[[Category:Liquidity_management]]
[[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