Questions about Penny Shares

Understanding Penny shares

Market capitalization (market cap)

The term 'market capitalization' or 'market cap' is one that many investors use frequently. It refers to the agreed value of the company's equity. Small or young companies tend to have less assets and less value; these are the companies which usually have a low market cap and which subsequently have low share prices. Market cap is one of the factors which determines whether a company's shares can be classified as being penny shares.


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