WHAT IS PEENY STOCK IN SHARE MARKET

WHAT IS PEENY STOCK IN SHARE MARKET 

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 WHAT IS PEENY STOCK 

peeny stock stock is a type of stock that is traded at a very low price and also has a low market capitalization. In India, it is usually traded at Rs 0.01 to Rs 10 per share. These stocks are usually unique and are traded on a small exchange board. These are ultra micro-cap companies with low market capitalization.

Rules for Investing in Penny Stocks

• Widely diversify the portfolio and keep a basket of penny stocks.
• Monitor performance on a daily basis.
• Invest only with small amounts.
• Set a strict disadvantage
• Be skeptical of research reports portraying a picture.

Advantages of Penny Stocks

In penny stocks, not every trader invested extensively in it. Regular investors are not used to investing in such stocks because of fears that the fundamentals are not clear. Institutional investors stay away from investing money in stocks as market capitalization is low.
Due to these reasons, there is also profit generated. 

When the investor follows his daily planning system with discipline, he can earn money from stocks by learning the basics properly. If the investor is good in fundamentals and is ready to buy the stock at a very low valuation then he can also earn profits from stock shares. So, these are the best advantages of penny stocks. 

Disadvantages of Penny Stocks

The disadvantage of penny stocks is that the fundamentals are unclear. The investor does not get proper access to the research reports and even the credibility of the audited reports are questionable. They have very small amounts available for stocks that need to be traded.

WHAT IS A PEENY STOCK AND A SMALL CAP STOCK 

A penny stock and a small cap stock represent shares of a company with a low market capitalization. However, there is a difference between the two. A penny stock trades at a low price and low market capitalization, and it often trades over the counter. Small-cap stocks are based on the market capitalization of a company, not its stock prices.

WHAT ARE THE PEENY STOCK IN INDIA 

Penny stock is a type of stock that is traded at a very low price and also has a low market capitalization. In India, it is usually traded at Rs 0.01 to Rs 10 per share. These stocks are usually unique and are traded on a small exchange board. These are ultra micro-cap companies with low market capitalization.

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