What’s to know mandatory before investing in penny stocks

•      Penny stocks are stocks which have very low or negligible volume and they trade at very low prices, have low market capitalization, and are mostly illiquid companies.

•      Big investors are always  remain  away from these penny stocks because they have very weak fundamentals and not reliable.

•      However, they are also known for multi-bagger returns within certain trading sessions.

    •      Due to very low volume, sometimes only a few orders can able to hit the circuit limit on the exchange.

•       These stocks mostly give higher returns when hitting circuits for a number of days. It’s better to say that these stocks can make a person or investor ‘Hero or Zero”.

•      In the market, There is strong story behind the great return  of these penny stocks that moving around of the stock.

•      It might be due to manipulation by some stock operators who artificially inflate the price and volumes to trap the innocent retail investors and then later offloading their own holdings. 

        There are very few of them which turn out to be true or genuinely fundamentally stronger company