Why do people avoid penny stocks?

[Rajarathinam]

Penny stocks price can be easily manipulated and we may end up in loss as people falsely rise the stock value and suddenly short it.

[Dipakk Mehta]

<p style=”text-align: left;”>People avoid penny stocks because it is traded in less volume and can be easily manipulated. The company is less reliable in nature.</p>

[Vineet Kumar Nair]

People avoid penny stocks because:

1. It fluctuates tremendously in price

2. Easy to manipulate

3. They can be illiquid in nature

[Ganesh]

Penny stocks will be traded in low volume. The company is not a high profile one.The reliability and earning capacity is very low.

[Guru]

<p style=”box-sizing: border-box; margin: 0.85em 0px; direction: ltr; color: #777777; font-family: ‘Roboto Slab’; font-size: 13px;”>People avoid penny stocks because:</p>
<p style=”box-sizing: border-box; margin: 0.85em 0px; direction: ltr; color: #777777; font-family: ‘Roboto Slab’; font-size: 13px;”>1. It fluctuates tremendously in price</p>
<p style=”box-sizing: border-box; margin: 0.85em 0px; direction: ltr; color: #777777; font-family: ‘Roboto Slab’; font-size: 13px;”>2. Easy to manipulate</p>
<p style=”box-sizing: border-box; margin: 0.85em 0px; direction: ltr; color: #777777; font-family: ‘Roboto Slab’; font-size: 13px;”>3. They can be illiquid in nature</p>
<p style=”box-sizing: border-box; margin: 0.85em 0px; direction: ltr; color: #777777; font-family: ‘Roboto Slab’; font-size: 13px;”>4.The company is less reliable in nature.</p>

[Author]

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