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What is penny stock?

    If we talk about in indian rupees if stock price is greater than 0 and
less than 20 then it is called penny stock. So as the price indicates these
companies are small and very young in their business and might have entered
into stock market to raise capital to improve their business. These
companies will have the management that is not well known to outside world
and usally no infomation / news is available about what is going on inside
the company. But don’t not get confused that all new IPOs are penny stocks.
Some companies will enter the market after very successful in their domain
like TCS, DLF, suzlon etc.

So that means I should not invest in penny stocks? (more…)