Penny shares and SLY: 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
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1.  ''Investment - investment strategies - equities - listed equities.''
The key short-term investment principles and prioritisation of:


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.
<b>S</b>ecurity


<b>L</b>iquidity and


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.
<b>Y</b>ield




They are generally very high risk investments, and unsuitable for non-professional investors.
This ordering of the principles and considerations is fundamentally important.




2. ''Investment - investment strategies - equities.''
The safety and security of the funds invested are always the first priority.
 
Yield is the least important of the three considerations.


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




== See also ==
== See also ==
* [[Equity]]
*[[Security]]
* [[Financial Conduct Authority]] (FCA)
*[[Liquidity]]
* [[Ordinary shares]]
*[[Yield]]
* [[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:Accounting,_tax_and_regulation]]
===Other links===
[[Category:The_business_context]]
*[[Media:Risk and return.pdf| The Icelandic banking saga and English local authorities, UK Audit Commission, 2009]]
[[Category:Corporate_finance]]
*[[Media:2015_06_June_-_Safety_first.pdf| Safety first, The Treasurer, 2015]]
[[Category:Investment]]
[[Category:Identify_and_assess_risks]]
[[Category:Manage_risks]]
[[Category:Risk_frameworks]]
[[Category:Risk_reporting]]
[[Category:Financial_products_and_markets]]

Revision as of 19:37, 20 November 2015

The key short-term investment principles and prioritisation of:


Security

Liquidity and

Yield


This ordering of the principles and considerations is fundamentally important.


The safety and security of the funds invested are always the first priority.

Yield is the least important of the three considerations.


See also


Other links

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