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Penny Shares
Penny Shares are shares of smaller holdings which have a low value. There is no official rule for when an equity becomes a penny share but it tends to be when the bid-spread offer is around 10% of the offer price or if the share price is less than 50p.
Penny shares are normally issued by companies that are generally capped at under £100 million and have only just started trading. These companies are likely only to have a small amount of assets and a short operating history and so, as a result, these shares are usually lower in price. This is in contrast to shares in large blue-chip companies which tradtionally had the stability of a large amount of assets and a long trading history to fall back on.
However, you should be aware that because these new companies are unproven, there is a much heightened element of risk when trading in penny shares.
| Five Key Benefits of trading Penny Shares with Halifax Share Dealing |
| 1. Highly competitive dealing charges - deal online for only £5 for deals worth under £250, £11.95 for all other deals (excluding international trades) or over the telephone from £15 |
| 2. Be the first to invest in the companies of tomorrow |
| 3. Benefit from potentially large returns - but equally beware of large losses. |
| 4. Access to Advanced Dealing (TradePlan), a new way to control risk and maximise profit |
| 5. Open an account with Halifax Share Dealing and have access to our new Market Research Centre to find out all you need to know to invest in the FTSE with confidence |
Accounts with Halifax Share Dealing
Share Dealing Account - the easy and efficient way to buy and sell shares
Halifax ShareBuilder - the Regular Investment product
Self-Select Stocks & Shares ISA - invest in various funds as well as stocks, shares and other investments in one tax-efficient account
SIPP - invest in funds for your retirement with a Self-Invested Personal Pension
Next Steps
Apply now for an account with Halifax Share Dealing
Transfer your investments held with another broker to us
Research your chosen share performance here.
Advanced Dealing (TradePlan) - Take control of risk and make the most of the rise and fall of the market, without having to keep a constant watch over it
Weekly Newsletter - Subscribe and receive the latest trading news to your email
Free Trading Tutorials & Company Reports - A good place to start for an introduction to buying shares and finding out more about your chosen companies.
Halifax Share Dealing Limited. Registered in England No. 3195646. Registered Office: Trinity Road, Halifax, West Yorkshire, HX1 2RG. Authorised and regulated by the Financial Services Authority, 25 The North Colonnade, Canary Wharf, London, E14 5HS. A Member of the London Stock Exchange and an HM Revenue & Customs Approved ISA Manager.
