What are Penny stocks? How to research them? [Using Investing.com]

What are Penny stocks? How to research them? [Using Investing.com]

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What are Penny stocks? How to research them? [Using Investing.com]

Penny stocks are the darlings of new investors. The low market price of these stocks make them quite attractive to the beginners.

What are penny stocks?
Those stocks which trade at a very low market price (less than Rs 10) and have a very low market capitalization (typically under 100 crores) are called penny stocks in Indian stock market.

These stocks have low liquidity and are speculative in nature.

In the western world, penny stocks used to be those stocks who trade below one dollar. However, nowadays, the stocks trading below are considered as penny stocks there.

These penny stocks belong to small caps companies and are generally listed in smaller exchanges. However, you can find a number of penny stocks listed on both BSE & NSE.

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