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However, you can still make money trading penny stocks if you trade smart and know what to look for. Penny stock companies don’t want to be Penny stock companies, so the successful ones have a strategy in place to grow the business and get listed (or re-listed) on a major exchange.
Is it illegal to buy penny stocks?
Are Penny Stocks Illegal? Penny stocks are legal, but they are often manipulated. Companies are often traded on the OTC markets because they can’t meet the strict SEC financial reporting requirements of a larger stock exchange.
What are penny stocks in India?
Penny Stocks are stocks which trade at very low price and have a low market capitalization. Typically, penny stocks in India generally trade at Rs 0.05 to Rs 10 per share. These are ultra micro-cap companies with a market capitalisation of less than Rs. 50 crore. Penny stocks are generally not known to the investing public at large.
What are penny stocks and should you invest in them?
These stocks (penny stocks) are lesser-known to the larger investing public as investors remain away from them because the information regarding their fundamentals and businesses is either not reliable or not available. However, they are also known for multi-bagger returns within certain trading sessions.
Why do penny stocks go down in price?
However, because of low price, they are able to decline by a great percentage also when someone sell these stocks in a good quantity. Generally, a stock trading in penny price could be due to either very small size of the company, collapse of the business which resulted into heavy decline in shares, or financing problems.
What are the best stocks to invest in in India?
It is notable that there are well known stocks in the list such as Indian Overseas Bank, Idea Vodafone, Trident, Alok Industries etc. TRIDENT TRIDENT LTD. SUZLON SUZLON ENERGY LTD. SOUTHBANK SOUTH INDIAN BANK .
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