Power of Penny Stocks
When it comes to the stocks with prices lower than $1 we call them as penny stocks, but in India any stock in the price range below Rs 10 is considered as Penny Stock.it could be of Rs 5, Rs 1 or even Rs 0.50 and Rs 0.05 depending upon the Market Capital and the Number of Stocks divided. In general Small or Micro business Companies issue Penny Stocks and people buy them with eager enthusiasm to quickly become Rich lets do some math. 1) You have Rs 5000 and you buy 50 shares of XYZ company at Rs 100/share and the price of the share rise by Rs 10 or by 10%, How much do you earn =50*10=500, Rs 500 maybe in a month or so. 2) You have Rs 5000 and you buy 50,000 shares of ABC at Rs 0.10 and within a month the price of each share increases only by 5 or 10 paisa, so how much return does it give, 50-100%. and you double your money in just a few months so now, you know the Power of Penny Stocks as to why they are so attractive, there have been many companies in Indian Stock markets ...