Penny Shares Daily News and Updates

This magazine is for the first-time investor, or for anyone who wishes to learn more about investing in penny shares on the London stock market. This magazine will help you learn the basics of small cap investing and will also provide you with access to other investors who are successfully trading, and making a profit, from penny shares.

Our unique newsletter will provide you with the opportunity to ask questions on-line and talk to other penny share investors. Subscribe today to our free guide to investing and enjoy this free service.

Definition

In the U.S. financial markets, the term penny stock commonly refers to any stock trading outside one of the major exchanges (NYSE, NASDAQ, or AMEX), and is often considered pejorative. However, the official SEC definition of a penny stock is a low-priced, speculative security of a very small company, regardless of market capitalization or whether it trades on a securitized exchange (like NYSE or NASDAQ) or an "over the counter" listing service, such as the OTCBB or Pink Sheets. The terms penny stock, microcap stock, small caps, and nano caps are sometimes all used interchangeably, however per the SEC definition, penny stock status is determined by share price, not market capitalization or listing service.

In the UK markets, a penny stock, or penny shares, as they are more commonly called, generally refer to a stock and shares in small cap companies, defined as being companies with a market capitalization of less than £100 million and/or a share price of less than £1 with a bid/offer spread greater than 10%... In the UK Penny Shares are covered by a standard regulatory risk warning issued by the Financial Services Authority(FSA)

In France, a penny stock generally refers to a risky stock with a price of less than 1

Penny stocks generally have market caps under $500M, trade under $5.00 per share and are considered speculative, particularly those that trade on low volumes over the counter.