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What Is Penny Stocks

PENNY STOCKS

If you have an Interest for Money Markets, you may have heard ordinarily about Penny Stocks or Penny Share, Penny Stocks are additionally called Low Priced Stocks,

Today we will discuss what is the finish of the Penny Stocks.

 Penny has the Hindi Significance Coin, the word Penny is utilized in both the UK and Ireland monetary forms,

Penny Stocks in the Stock Market are called Stocks, which are commonly much Lower, and the market capitalization of the Penny Stock Company is additionally much Lower,

On the off chance that you talk about the Estimation of Penny Stocks in India, by and large, the Estimation of Penny Stocks can be from Rs. 1 to Rs. 25, the market top of Penny Stock organizations is not exactly or equivalent to 100 crores or Small-Cap Company,

 

HOW TO KNOW PENNY STOCKS 

There is no Authoritative method to realize which organization’s Stock is Penny Stocks, Penny Stock is a term utilized for Stock Cost in a Securities Exchange,

For the most part, it is imperative to take a gander at the organization’s Market Top to discover Penny Stock offers, the market top of the Penny Stock organization is littler or littler than the little Market Top organization, and their Stock is likewise beneath the estimation of 25 rupees.

 

ADVANTAGES AND DISADVANTAGES PENNY STOCK 

This Stock is very attractive to the Investor, due to Low and Cheaper prices of Penny Stocks, some of the facts of Penney Stocks are Advantages and Disadvantages.

• Investing in Penny Stocks seems very good and right because a lot of Shares are available in Less Money,

For example – if you have Rs 10000, then you can take a Share of Rs 500 with only 20, whereas if you take 10 rupees, you get 1000 shares,

And in this way, if you have Bought 1000 shares of Rs 10, then if the Share Grows by 1 rupee you can benefit from 1000 while taking 20 shares of Rs 500 when it will Increase 50 Rupees, you will Gain 1000,

On the other hand, it is also worth noting that if you face a Loss of 1000 Rupees in 1000 Rupees, then you can have a direct Loss of 1000, while 20 Rupees in 500 Rupees will Decrease by 50 Rupees only if you Get 1000 will have a Loss.

 

• When purchasing Penny Stock, the Investor feels that the Stock Of 10 can easily be 20 Rupees, while taking a Share Of Rs 500 to 1000 may take a lot of time,

The second aspect of this is that it is also very common to get a Share of 10 Rupees for Rs 10, and it can be difficult to Get Rs 250 for a Share Of Rs 500,

Therefore Investing in Penny Stock should be very Understandable

•  Penny Stocks seem to be very attractive to a Common Man, and it seems that Penny Stocks have been made for the Common Man, and often the Common Man loses money in the Stock and their capital is Hoisted,

Let’s Understand with an example,

Like today, a Share of HCL LIMITED company is Rs 65,000, which is very difficult to Buy for a common Investor, even if a common Investor has 65000 Rupees, he will never take a Share of HCL, while on the other side If the Share is Trading at 13 Rupees, then a common Investor will easily get Attracted towards that Low-Value Share.

 

CONCLUSION 

After understanding about Penny Stocks, there are two questions now,

First of all, should we Invest in Penny Stocks or not – so the answer is, can be Invested, but if the Stock Market expert believes, then only a small portion of our portfolio is Less Than 5% Should Invest in Stocks,

The second question is whether Investment in Penny Stocks is absolutely Safe – the answer is, Not At All,

There is no Guarantee of Capital Protection in Investment in the Stock Market, and especially when you Invest in Penny Stocks, due to the Small Penny Stock company being Short, due to any Financial Crisis, it will come very Quickly on the brink of Drowning. is,

About PENNY STOCKS Company There is usually no NEWS in the Market, due to which Investing in these Companies becomes even riskier as Manipulation can be done very easily in the Stock of these Companies,

Generally, the tips provider tells the Stock of a similar Company, which is a PENNY STOCKS, and later they play a game of Manipulation in it.

Therefore, Investing in Penny Stocks should be carefully cautious and should periodically Review its INVESTMENT