Penny Shares

B

bobk

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I have a little bit of money to invest on penny/cent shares.

What would be the best way to go about this?

Are there decent websites with low commision rates that allow for this kind of thing?

Where would I go to find out more information about this?

Thanks in advance

Bob
 
i think there is a list of brokers and their prices on the site some where .just search for it. i think goodbody is the cheapest.it is about the 32euro the last time i did a trade. just search for the list or go to he annoucements at the start of this fourm
 
have a look at www.iii.co.uk for info on shares. Please note that not all the information is reliable, in that you cannot believe every poster that their tip is the one to go for.

You could then try some discount online broker like sharewatch or one of the others you will trawl up on the net.

Good luck
 
In my experience you'd be better going to the bookies and putting your money on a few short priced favourites than penny shares. Total flutter either way and no commisions/tax.
 
check out the exchanges you want to buy on and see the list of authoirsed firms...check then with fsa...

be careful that the company you deal wit is authorised...know for dodgy companies to have a name very very similar to repetable co:

you can also buy into an etf or mutual fund...(certain tax advantages on these....look into...)
this is safer and spreads the risk, but is still risker, by a long shot, than the larger cap markets.
 
There are many tales of people getting rich with 'penny' shares; beware. The shares could turn out to be easier to buy than to sell. Those that do have some liquiduty (i.e. someone willing to buy them back off you) will have large buy/sell spreads.

IMH avoid.
 
I know a little about how many penny share companies work.

In particular, companies quoted on the Alternative Investment Market (AIM) . I would not say they are all the same but some operate as follows:

AIM has very light requirements for companies that wish to float on it - unless there has been a change recently in order to float the only two real requirments (worth mentioning) are:

1. Nominated Advisor (NOMAD) needs to approve prospectus
2. Company must demonstrate that it has working capital for 12 months

Companies often place shares with certain stockbrokers. These stockbrokers then place shares with their 'clients'. These stockbrokers often own the shares and they sell to their clients at a higher price. They usually use pretty hard sell tactics too.

Once they sell the shares the market in the shares completely dries up. And whilst one or two market makers will quote a price, it is usually for a small volume. One market makers will usually be the broker for the company. Any trading in size (sometime only hundreds of pounds) will knock the price. Can be next to impossible to trade them.

IMO I would avoid these types of companies- Often the only people making money are directors, brokers and other connected parties.

That said not all penny shares fall into this category.
 
You can definitely buy/sell AIM quoted companies through an Irish broker -
Not sure to what extent Irish brokers place AIM quoted shares with their clients.

Interested to find out if anyone knows?

Some Irish brokers definitely cover AIM quoted companies.
 
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