What are Penny Stocks?
Penny Stocks refer to shares of small, low-capitalisation companies that trade at relatively low prices, generally at or less than $5 per share. These stocks are often perceived as high-risk, high-reward investments and have gained significant attention among both seasoned investors and newcomers to the stock market in India. Penny Stocks are typically characterised by their low market price, and their relatively small market capitalisation, which can range from a few crore rupees to a few hundred crore rupees. These stocks are often associated with emerging companies, startups, or those facing financial challenges. Due to their low share price, they can appear affordable to investors, but their inherent risk should not be underestimated.
Table of Content
- Features of Penny Stocks
- How Penny Stocks Work in India?
- Tips for Investing in Penny Stocks in India
- Advantages of Penny Stocks
- Disadvantages of Penny Stocks
- Conclusion