- April 26, 2019
- Posted by: admin
- Category: Eduction
What is Penny Stock?
Penny stocks are those that trade at a very low price, have very low market capitalization, Penny stocks in the Indian stock market can have prices below Rs 20- 25.
Reasons why beginners invest in Penny stock
• Low price • their price increase rapidly
• human psychology It is important for us to know why is specific a stock in the category of these stock
To find out we need to analyze the following
• Product Sometimes these penny stock can also become Multi-bagger But the chances are only 1% stock do not have liquidity and have high RISK…!!
• Buys do not invest much in them
• In case the stock market falls their price reduces drastically
• These companies are hard to track
• High rate of manipulation and spams
• SEBI has a firm look on such companies
MISCONCEPTION: PENNY STOCK WIL MAKE YOU RICH
TRUTH: THEY ARE DOG SHIT..!!
To learn more you can check our video
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Youtube: Agrawal Market Gurukul