US EditionIs a penny share the same as a cheap share?
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Is a penny share the same as a cheap share?
If someone buys a share for a penny and it reaches a pound, their return will be 10,000%. Buying the same share at 50p and seeing it hit a pound means a return of a far more modest 100%. That logic has an attractive element to it. But it is also highly simplistic. Some penny shares turn out to be screaming bargains. Others though, fall until they are worthless. So, does being a price in pennies make a share cheap? How to value shares The answer …
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