Stocks, known as penny stocks, frequently trade for lower than INR 50. They're frequently illiquid and have a small request capitalization. As a result, lower investors are less familiar with penny stocks.

Because the information about their fundamentals and operations is either unreliable or unapproachable, investors stay down from them. still, after a many trading sessions, penny stocks are known for producingmulti-bagger earnings.

Also read penny stock list nse

Characteristics of Penny Stocks
Little liquidity, little literal data, the eventuality to come amulti-bagger company, and comparatively modest valuations are just a many features of penny stocks. Let's clarify these

Low Liquidity
Penny stocks are generally associated with small enterprises and infrequently change, which suggests a lack of request liquidity or buyers. Accordingly, since buyers aren't always accessible, investors may find it grueling to vend a penny stock in an exigency.

Limited literal Data
numerous businesses distributed as penny stocks may be youthful, and others may go out of business. These companies generally do not have any history or a terrible history. As you can anticipate, assessing a stock's eventuality is delicate when there's a lack of literal data.

High Return Implicit
Penny stocks frequently parade lesser volatility situations, adding both the eventuality for profit and the associated threat.

Low Cost
Due to their reduced price, penny stocks have the eventuality for a significant share price increase.