Features of Penny Stocks
1. Low Price: Penny Stocks are typically priced very low. This makes them accessible to investors with a small amount of capital.
2. Small Market Capitalisation: Penny Stocks are issued by small companies with a low market capitalisation, which means they are often smaller and less established companies, and their shares are not widely traded and can be difficult to buy and sell.
3. Low Liquidity: Penny Stocks often have lower trading volumes compared to larger, more established stocks. This can make it challenging to buy or sell large quantities of these stocks without significantly impacting the price.
4. Speculative: Penny Stocks are often speculative and volatile, meaning that their prices can fluctuate widely.
5. High Risk: Penny Stocks are considered to be high-risk investments due to their low liquidity, speculative nature, and potential for fraud.
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