Others   

Penny Stocks in a nut shell

Penny stocks can be defined specifically. Usually it denotes low priced, highly speculative stocks which normally sell at less than $1 per share. They are very unpredictable They prefer shares in small cap companies. They even can fluctuate hundreds of percentage points in minutes, sometimes as much as 400%.

Penny stocks

 

In the UK markets, a penny stock, or penny shares commonly suggests to a stock and shares in small cap companies. These companies with a market capitalization of less than £100 million and/or a share price of less than £1 with a put forward spread greater than 10%. Financial Services Authority (FSA) declares a standard regulatory risk warning about penny shares to the public who take part.