Updated: Feb 10
Penny stocks refer to stocks often trading at lower market prices. Typically any stock trading under Rs.10 is considered as Penny stock in India.
Whereas in the international market any stock that is trading under $5 is considered to be a Penny stock.
Generally, these kinds of stocks have a very low frequency of trading and that is the reason why Investors find it difficult to sell these stocks as there may not be any ready buyers.
The very basic advantage of Penny stock is, a very substantial amount of stock can be owned with a minimal amount of investment.
These stocks are completely unpredictable in nature. They may surge and provide the investors with higher returns "or" falls to very low with huge losses.
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