What are cheap shares?
It’s tricky to define what ‘cheap’ shares are – this largely depends on your point of view. But one thing you can say about them is that they tend to be undervalued.
For our article, we’ve looked at ASX-listed cheap stocks under A$5 per share, all of which the data indicate are undervalued.
The idea is that you buy a company’s shares cheaply before they rise in value, making yourself a decent profit. But buyer beware: Cheap stocks can be deceiving. Just because they’re priced for entry doesn’t mean they make good investments. They can be volatile – a factor that’s good for CFD trading – but not so much for share trading.