Why do people avoid penny stocks?

[Angelin Monica]

risk is higher than return

[Vimal Kumar]

Stocks with a very very low price are considered as Penny stock.

These stocks are highly speculative and less information are available. Too risky due to its lack of liquidity.

[Aravind S]

<p style=”box-sizing: border-box; margin: 0.85em 0px; direction: ltr; color: #777777; font-family: ‘Roboto Slab’; font-size: 13px;”>Stocks with a very low price are considered as Penny stock.</p>
<p style=”box-sizing: border-box; margin: 0.85em 0px; direction: ltr; color: #777777; font-family: ‘Roboto Slab’; font-size: 13px;”>These stocks are highly speculative and less information are available. Too risky due to its lack of liquidity.</p>

[Denis]

Penny stocks are lesser in value. Capital of the company is lesser when compare to giant in the stock market, its an sentiment approach that penny stock are risk.when the business has stronger earning ability and leadership investing in penny stocks is worthy.

[Rahul]

Penny stocks are very risky.and they may be manipulated by big players.gamblin happened in penny stocks.

[Author]

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