Penny shares and Prospectus Directive: Difference between pages

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imported>Doug Williamson
(Create page - source - FCA - https://www.fca.org.uk/consumers/penny-shares)
 
imported>Doug Williamson
(Create the page. Sources: The Treasurer, April 2017, p23 & Europa webpage http://eur-lex.europa.eu/legal-content/EN/TXT/?qid=1486378332133&uri=CELEX:02003L0071-20140523)
 
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1.  ''Investment - investment strategies - equities - listed equities.''
''European Union (EU)''


An ordinary equity share with a very low current market price.
The EU's Directive on the prospectus to be published when securities are offered to the public or admitted to trading (2003/71/EC).


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.
It was amended five times in the period 2008 to 2014, the 2014 amendment being Directive 2014/51/EU.
 
 
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 ==
* [[Equity]]
* [[Directive]]
* [[Financial Conduct Authority]] (FCA)
* [[Offering memorandum]]
* [[Ordinary shares]]
* [[Prospectus]]
* [[Penny]]
* [[Regulation]]
* [[Penny stock]]
* [[Security]]
* [[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: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]]

Revision as of 08:37, 4 April 2017

European Union (EU)

The EU's Directive on the prospectus to be published when securities are offered to the public or admitted to trading (2003/71/EC).

It was amended five times in the period 2008 to 2014, the 2014 amendment being Directive 2014/51/EU.


See also