what is penny stocks in india? mskearnings.com

what is penny stocks in india? [Now]

what is penny stocks in india? 

Hello friends, almost all of us must have heard about penny stock shares, but have ever invested in it and not well-informed about it. what is penny stocks? If you don’t know then in this article you will get all complete information about penny stocks. Because investing in penny stocks can prove to be dangerous. Let us know what is the matter that makes penny stock so scary.

How to find out which is a penny stock share?

The price of penny share starts from Rs.25, but in India the value of penny share does not exceed Rs.10. When you see the price of a share, then immediately after that you should see the market capital of that share. After that you should see the chart of the company. There is such a pattern in penny stock such that after every stipulated time you will see ups and downs in it.

Advantages of Penny Shares:

The value of penny shares is very low, so that new you can buy more shares for less money and due to which if the value of the share increases then you get more profit.
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The special thing about penny shares is that the value of the share increases in a very short time as it does not happen in the common stock. New investors can invest in shares with less money and can get good profits by investing in penny shares.

Disadvantages of Penny Shares:

Investing in penny shares can never be considered safe. Just like you can get more in Penny shares, in the same way, there can be more loss than that in the fall in the stock.
No one can tell when what will happen in penny share, 10 rupees share can easily go up to 1 rupee while 300 share will come up to 150 but due to being a good company, it can go up again.
Big investors invest in penny shares, due to which the stock suddenly goes up and suddenly sells the shares and book profits due to which ordinary investors get stuck.

Can Penny Shares Make Money?

Yes, you can earn money in penny shares, but if you are new to the stock market, then avoid investing in it. To earn better profit than this, first of all you should know about it and learn how to trade in penny share.

Is it legal  to buy penny shares?

Taking penny shares is legal. But the value of these shares is very low and these shares are not listed in the major exchanges.

What should I do to invest in penny shares?

Yes, you can buy penny shares up to 2 percent from your investment holding portfolio. So that even if your penny share goes Down, you will not have to suffer much loss.
To choose a penny share, you have to practice such a stock, from which you can take penny shares and earn profit from it.

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