Why do people avoid penny stocks?

[vasanth]

penny stocks highly volatile, risk can be higher than actual return

[Dr Faiz]

Stocks that are having very low market price are called as Penny Stocks. Usually new investors are attracted by the low price and promises that its future is good . But without a good understanding of the company and its current assets and liabilities it is not advisable to invest in such companies.

[canute]

 

People avoid Penny stocks, because the market price is very low it’s  highly volatile and the risk is higher than return.

[sanjaivasan]

Penny stocks highly volatile, risk can be higher than the actual return

[Ranjani Arumugam]

Penny stocks are more risky, are subject to insider trading and speculation and not much is known about the companies.

[Author]

Posts