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earn commission bonus share by recommending products ✌️【365vc.net】✌️Start saving with ₹500 and achieve up to 100% monthly returns. Grow your money smartly! A penny stock refers to a stock with a relatively low price and market capitalization.

In India, stocks trading under Rs 10 are categorized as penny stocks.

​(Image source: Freepik)

These shares typically have a smaller shareholder base, wider bid-ask spreads, and limited information disclosure.

(Image source: Freepik)​

Due to their low liquidity, these stocks are susceptible to price manipulation.

Large purchases of shares can cause price spikes, while selling off shares can lead to price declines.

(Image source: Freepik)​

Penny stocks exhibit heightened volatility, offering both increased potential for reward and heightened risk.

(Image source: Freepik)​

Due to the susceptibility to price manipulations, these stocks carry additional risks such as sudden delisting and regulatory scrutiny.

(With inputs from Centre for Investment Education and Learning content which appeared in Economic Times) - (Image source: Freepik)​earn commission bonus share by recommending products Smart Wealth Management for Maximum Returns