Should we invest in PENNY Stock or not?

Posted by Garima Sain on July 11th, 2018

If you have an interest in the stock market, you may have heard many times about Penny stocks or Penny Share, penny stocks are also called Low Priced stocks,

Today, we will talk about what is Penny Stocks?

PENNY STOCKS (Penny Stocks)
Penny has the Hindi meaning coin, the word PENNY is used in both the UK and Ireland currencies,

Penny Stocks in the Stock Market are called Stocks, which are generally much lower, and the market capitalization of the Penny Stock Company is also much lower,

If you talk about the value of penny stocks in India, then gene

How do you know how to share PAN stocks?

There is no definitive way to know which company's stock is penny stocks, Penny Stock is a term used for stock price in a stock market,

Generally it is important to look at the company's market cap to find penny stock shares, the market cap of the penny stock company is smaller or smaller than the small market cap company, and their stock is also below the value of 25 rupees. ,

Advantage and Disadvantage of PENNY Stock

1. Investing in penny stocks seems very good and right, because a lot of shares are available in less money,
For example - if you have Rs 10000, then you can take a share of Rs 500 with only 20, while if you take 10 rupees, you get 1000 shares,

And in this way if you have bought 1000 shares of Rs 10, then if the share grows by 1 rupee then you can benefit from 1000, while taking 20 shares of Rs 500, when it will increase 50 rupees, you will gain 1000,

On the other hand, it is also worth noting that if you face a loss of 1000 rupees in 1000 rupees, then you can have a direct loss of 1000, while 20 rupees in 500 rupees will decrease by 50 rupees only if you get 1000 Will have a loss.

2. When purchasing penny stock, the investor feels that the stock of 10 can easily be 20 rupees, while taking a share of Rs 500 to 1000 may take a lot of time,
The second aspect of this thing is that it is also very common to get a share of Rs 10 rupees for Rs 10, and it can be difficult to come to 250 rupees for a share of Rs 500,
Therefore investing in penny stock should be very understandable

3. Penny stocks seem to be very attractive to a common man, and it seems that penny stocks have been made for the common man, and often the common man loses money in the stock and their capital is swallowed,

Conclusion -
After understanding about Penny Stocks, there are two questions now,

First of all, should we invest in Penny Stocks or not - so the answer is, can be invested, but if the stock market expert believes, then only a small portion of our portfolio is less than 5% Should invest in stocks,

The second question is whether investment in Penny Stocks is absolutely safe - the answer is, not at all,

There is no guarantee of capital protection in investing in the stock market, and especially when you invest in money stocks, due to the small penny stock company being short, due to any financial crisis, it will come very quickly on the brink of drowning.

So we discuss here all about Penny stock investment If you are interest in Penny stock please contact with Capital vraddhi. Capital vraddhi is the SEBI registered leading investment advisory in indore. You can read capital vraddhi reviews online.