Penny stock: Difference between revisions
imported>Doug Williamson (Create page - sources - Oxford English Dictionary - Moles & Terry Handbook of International Financial Terms) |
imported>Doug Williamson (Expand first definition.) |
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Investing in such stocks 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. | Investing in such stocks 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. | |||
Latest revision as of 11:38, 10 February 2022
1. Investment - investment strategies - equities - listed equities.
An ordinary equity share - common stock - with a current market market price of less than US$ 1 per share.
So that its current market price can be expressed entirely in terms of "pennies" (= US dollar cents).
Investing in such stocks 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 - listed equities.
An ordinary equity share with a very low current market price per share, below a given threshold.
However - depending on the market - that threshold need not be exactly US$ 1, as described above.
For example, perhaps GBP 0.50, or US$ 5.
