Why do people avoid penny stocks?

[S Suresh]

Any stock that trade below one dollar is called penny stock. Here the returns are also good and risk is also very high, so people generally avoid penny stocks.

[Rajesh kumar]

Most penny stocks do not have a reliable business model and Management, Most people lose money in the penny stock, It is difficult to identity the worthy penny stock, so people in general avoid these stocks.

[Deepa]

As the volume is less in penny stocks it is not easy to predict the demand and supply in company, so people avoid penny stocks.

[suraj]

Because it can be easily manipulated by traders.

[shri hari]

penny stocks only for the risk-takers.most of the time, stock are  newly published so highly volatile.you can easly  lose a penny  because of the volume you lose multiple time.same-way it multiples your profits when it increases

[Author]

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