Penny stocks are those stocks, which are traded at very less or low price.
Penny stocks have a very low market Capitalizations
Usually, penny stocks are under 10 Rupees.
1- Multi-bagger Returns Some stocks have good potential to become multi-bagger stocks in the future. For Ex Titan It went from Rs 4 to Rs 1600 2- Penny stocks get at Cheap Generally, most of the penny stocks are got under Rs 100.
1- Limited Information There is less information about these companies for analysis. 2- Volatility There is more volatility in penny stocks as compared to regular stocks. 3- Scam In most penny stocks scams are happens. i.e. Pump and Dump