How to Buy Penny Shares

How to Buy Penny Shares and Reduce the Risk Factor

First of all if you want to buy penny shares and sell penny shares as well then insofar as the UK is concerned there are a number of places you can do this.

You will normally find penny shares to be listed on the Alternative Investment Market.[AIM] This is a market which opened in the mid nineties to give fledgling companies access to the public and at the same time making them more credible, and giving them a higher profile.

So it is here you will find the new companies to investigate and invest in before they have much of a track record, and they are true penny shares.

The main London Stock Exchange[LSE] is where you will find Companies who have been in existence for at least three years. They will also need to have a minimum market capitalisation and at least 25% of their shares in the hands of the public. Here you will find the Recovery Penny Shares discussed.

Under the LSE you will be able to find sectors such as techMARK for cutting edge technology companies, and you can use the FTSE AllShare which will let you see not just the top hundred but all the shares on the market, to help with your investigations.

Check out the Off exchange[OFEX] A small independent market, and has a lot of small companies not only from the UK. It isn't regulated and so companies here aren't officially listed, but they could shortly move forward to the LSE or AIM.

All this information about penny shares to buy is all very well, but how to buy penny shares is the question. 

How to Buy Penny Shares 

This is no different to any other kind of share dealing, in that you need a stockbroker. The London Stock Exchange has a service to help you locate a broker that meets your needs.

You can do it by phone or online, and speed is sometimes essential. You need to find what is called an Excecution Broker who will charge you less than £10 per trade.

It's not difficult, and if you do your investigations properly the 'how to buy penny shares bit is easy'

The purpose of this website is to ensure you fully understand

what Penny Shares are, and you will find much of what you need to know on th e internet.