Questions about Penny Shares
What are penny shares?
Penny shares, sometimes known as penny stocks, are a particular type of share that has a low More...
Types of penny shares
Penny shares split into several sub categories that describe the industry that they belong to, the age More...
Which Markets?
Within the United Kingdom there are three main markets which penny shares may be traded on. More...
Research, Research, Research
One of the most important elements to consider when you are researching penny shares is the More...
What does it mean in simple terms?
Visit our Glossary for simple explanations More...
Spread Betting.
What is Spread Betting? More...
Which markets are penny shares traded on?
Within the United Kingdom there are three main markets which penny shares may be traded on.
London Stock Exchange (LSE) Main Market Penny shares that are traded on the LSE Main Market tend to belong to companies that have suffered recent or cyclical losses. This generalization can be made because of the strict regulations the LSE has for companies that want to be listed - the companies must have been trading for at least three years, must be above a certain market cap, and must have at least twenty-five percent of their shares in the public domain. As such the LSE tends to be the place for finding 'recovery' penny shares - those that are likely to increase dramatically in value after a sharp fall.
Alternative Investment Market (AIM) The AIM has only been in operation for thirteen years, and was formed specifically to bolster young or newly listed companies. Well over two thousand companies have been listed on the AIM since its opening, and it continues to be the primary market for penny shares to be traded on. The AIM is one of the best places to find penny shares in biotechnology companies, internet companies, and new enterprises.
Off Exchange / Plus Markets What was once known as the Off Exchange is now the Plus Market. Technically an 'unofficial' market, Plus is the place for small companies to make the first step into the public domain. Investors in the Plus Market should be wary of the risks involved in buying shares in such small, young businesses.
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