penny share

a readily realisable security in relation to which the bid-offer spread is 10 per cent or more of the offer price, but not:

1. (a) a government and public security; or
2. (b) a share in a company quoted on The Financial Times Stock Exchange 100 Index; or
3. (c) a security issued by a company which, at the time that the firm deals or recommends to the client to deal in the investment, has a market capitalisation of £100 million or more (or its equivalent in any other currency at the relevant time).5