Penny Stocks are low value stocks and majority of companies belongs to Penny stock category are either Loss making companies or companies which lack Fundamentals and credibility.Investor sometime mistakes all low value company as penny stocks but this is not true.In most case the face value of company is Rs 10 but some company will reduce the face value to Rs 1 in that case their stock will also be 1/10 th of similar company which have face value of Rs 10.fo ex if company A has stock value of Rs 8 and face value Rs 10.Another company B has the same stock value of Rs 8 but its face value is Rs 1.In this case if we equate the face value of company B ie face value *10 and stock value also had to multiply by 10 so stock value become Rs 80 So in this case company B is not a Penny stock.
Investment in Penny share category is a risky one as penny stock lack fundamentals and lot of manipulation and rumours will happen in that category.
Investment in Penny share category is a risky one as penny stock lack fundamentals and lot of manipulation and rumours will happen in that category.
I am unable to read articles online very often, but I’m glad I did today. This is very well written and your points are well-expressed. Please, don’t ever stop writing.
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