A term often used by share tipping publications. Shares that have a low absolute price. Low prices are not unnecessarily an indication of good value.... more on: Penny shares
Firms with a low market capitalisation. Many stocks on smaller exchanges such as AIM are penny shares.
These are just what the name says, shares that cost less than a penny. They are low in price, but are necessarily a great money making investment. If you are looking for a profit penny shares their share price has to cover the spread with a giant increase.
For the purposes of this website we treat panny shares as those with a price of less than £1 OR a market cap. of less than £100 million.
Shares in companies that have a low market capitalisation, whose price is usually just a few pence. Investors are often misled by the price into thinking they are cheap, when in fact the bid/offer spreads can be very high. Penny shares can also suffer from illiquidity and extreme volatility. They should be considered as high-risk by most investors.
Term used to describe Shares with a low value, usually under £1 per Share; very often high-risk Shares.