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Buying penny shares

Discussion in 'General Board' started by Retired_member41, Jul 4, 2012.

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  1. Retired_member41

    Retired_member41 Retired Member

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    How many people on here buy small priced shares?

    Anyone own MXP or LGO?

    Replacing domains lol

    Any advice?
     
  2. Domain Forum

    Acorn Domains Elite Member

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  3. accelerator United Kingdom

    accelerator Well-Known Member

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    This is not investment advice but ...

    Do not think that because a share has a price in pennies that it is "cheap". That is a common misconception of those unfamiliar with buying shares. In fact they are "expensive", and usually more likely than other companies to go bust.

    There is also the matter of the bid offer spread, which is the difference between the price you can buy at and the price you can sell at. For a share price in pennies, the bid offer spread usually represents a much much larger percentage of the share price, meaning the share price has to make a much larger percentage gain before you make a profit.

    If anything, a share price in pennies would put me off a share rather than make me buy it.

    I think domains are much better investments than penny shares.

    Rgds
     
  4. saberace

    saberace Member

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    A former stockbroker once told me when I enquired about penny shares - 'they're only worth pennies for a reason...'
     
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