Member Info for longtimeinvestor

flec
''makes them more heavily traded''

A £100,000 purchase of Lloyds shares is a £100,000 purchase of Lloyds shares, whether the share price is 45p or 450p

flec
the amount of volatility in LBG shares would be the same whether 45p per share or 450p per share

the amount of volatility in LBG shares would be the same whether 45p per share or 450p per share

s1
bit more than a mid cap though - a banking business in the FTSE 100

If anyone wants to define a company as being a penny stock for being under 100p that is up to them, but the true definition is the type/size of company, many of which have a share price in the pennies.

A 'mickey mouse' company with a market cap of £3 million, with low market liquidity, 10% spread with a share price of 2p, will still be regarded a penny stock even if a 1 fr 50 consolidation took place

Flec
LBG is NOT a penny stock

'Penny Stocks
A penny stock refers to a small company's shares that typically trade for lower than $5 per share. Penny stocks are usually considered high-risk investments due to their low price, lack of liquidity, small market capitalization and wide bid-ask spread''

https://www.investopedia.com/ask/answers/050115/what-difference-between-penny-stock-and-small-cap-stock.asp

https://www.businessinsider.com/personal-finance/what-is-volatility?r=US&IR=T

brix
''but let's see what other posters think''

irrelevant - the term has been defined

flec
''but it will reduce volatility ''

whether LBG is 45p per share or 450p it would have no bearing or difference when it comes to the volatility of price.

Brix

LBG is NOT a penny stock - being under £1 a share is irrelevant.

A true penny stock could be trading at 10p per share or equally at £1.10p per share

''Penny Stocks
A penny stock refers to a small company's shares that typically trade for lower than $5 per share. Penny stocks are usually considered high-risk investments due to their low price, lack of liquidity, small market capitalization and wide bid-ask spread''

ffs you need educating

https://www.investopedia.com/ask/answers/050115/what-difference-between-penny-stock-and-small-cap-stock.asp

brix
I suggest you find out for yourself the definition of a penny share

Lloyds banking group is not a penny share

Aris

What is the difference between Aris mark I and Aris mark2?
Why did you want your Aris mark I posts wiped from the board?

Flec
''As a penny share''

Lloyds banking group is not a penny share

Lloyds current market cap, a bit over £30 Billion - I would be more than happy if it were possible to purchase back £2 Billion of stock each year whilst maintaining that level of market capitalisation.

So the buyback may end up purchasing about £2.44 Billion of assets for £2 Billion.

cds
''demand an extra divi, as then you have something to show for your investment.''

Buying back shares is for a longer term investment benefit.

''while reducing the number of shares also reduces the net asset value as the cash is gon forever.''

Nonsense - NAV per share will be increasing, because so far each 56p of nav it has been purchased for 46p.

BP is now comfortably above £4.

Have a good weekend

at under 416p the amount of shares I sold about a month ago for about 457p