Penny Stock
A very low-priced, often small and speculative share, typically volatile and thinly traded.
Related terms
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Common Stock
The ordinary shares most investors own: what common stock is, the rights it carries (voting and a residual claim on profits and assets), how you make money from it through growth and dividends, why it sits last in line, and how it differs from preferred stock.
Dividends
The income side of owning shares: what dividends are, how dividend yield and the payout ratio work, the key dates (declaration, ex-dividend, record, payment), why reinvesting them supercharges compounding, the difference between growth and income investing, and why dividends are never guaranteed.
Market Capitalisation
What a company is worth in the market: how market cap is calculated (price times shares), why the share price alone tells you nothing about size, the size bands from mega- to micro-cap and what they imply for risk, how free float adjusts index weighting, and how market cap differs from enterprise value.
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