What Is "Penny Stock"?

The pliteration of "Fairy" (fairy: cent) is the pliteration of Hongkong people's English "cent".

Fairy stock means its price has been less than 1 yuan, so it can only be divided into units of valuation.

In the US stock market, if the price of a stock falls below a certain price for a long time, it will be delisted.

Penny stock theory, originally derived from the stock market in Hongkong, is especially the stock market below L yuan, which is known as penny stock in English.

There are two reasons for calling this stock "penny stock".

First, before the British monetary reform, there was a currency in the British monetary unit called the shilling, the name of the British currency.

According to the British old currency system, 1 pounds equals 20 shillings, and 1 shillings equal 12 pence.

When the stock falls below HK $1, a few shillings are converted into the British currency, and the Hong Kong people generally call it "first share".

A stock of 1 yuan (that is, 1 shillings is HK $0.01).

There are similar claims in stock market in China.

For example, the stock of XX is a 100 dollar stock, or the stock of XX is ten yuan.

Second, although this kind of "pre stock" has little investment value in reality, it is very suitable to be listed as a "shell" for some companies.

Therefore, once a "first share" is selected as a listed "shell", new assets will be injected into it, and it will be worth a hundred times.

In traditional Chinese ideas, stepping up to the sky means immortality. At the same time, this stock is called "first share". Therefore, people turn to "fairy stock" by borrowing sounds, which is called "mouth color" in Hongkong, and the so-called "mouth color" is auspicious.