Penny shares can be traded on various different markets or trading facilities which can make it difficult to work out which one you are going to get the most out of.

To most common and popular place to trade penny shares is on the Alternative Investment Market (AIM). This reason for this is because the market has been designed to specifically help smaller, younger companies to get access to the public markets. As well as this it helps to increase their profile and credibility so you can be assured that you are investing in a worthwhile company.

Penny shares can also be traded on the London Stock Exchange's Main Market. However, this is more regulated and there is a certain criteria that companies have to match before they can trade on it. For example, the London Stock Exchange will only admit companies that have been trading for at least three years. This makes it impossible for new companies that are just starting out to trade on this market.

Other than these two major markets, there are other individual groups where you can trade penny shares. The good thing about these is a lot of them are specialised for different sectors. For example, techMARK is the market for technology companies. The beauty of this is that people know exactly what they are going into and they can find what they want quickly and easily.

One other market that penny shares can be traded on is the Off Exchange (OFEX). OFEX is an independent market that concentrates on small and medium companies as well as companies from outside of the UK. Although this market is not regulated which means that the companies on it are unlisted, it can be a good way for a company to make their way towards the Main Market or AIM.

If you are new to shares and don't know anything about them, it can seem very daunting and confusing. This is more than likely because of all the terminology and it's not something that people talk about on a day - to - day basis so chances are that you know absolutely nothing about it. If this is the case then it is very advisable to speak to a professional or a friend who knows more about it. It would be very unwise to invest in penny shares if you haven't got a clue what you are doing because unless you are very lucky, chances are things will go wrong. However, with the right advice penny shares are likely to be a very worthwhile investment.

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