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Future of Penny Stocks

Posted By On 3/16/2009 11:29:00 AM Under

1. The future of penny stocks is always bleak and it is in the best interest of any investor to avoid these scrips. Do not get into the mode that it is a low risk entry.

2. Do not get tempted by the low prevailing price as it is not a quick rich scheme but will definitely eat into your capital. Neither one is going to get any dividend nor any returns. Do not get fooled by low priced scrips hitting the roof as these low priced stocks have low volume and thrive on the business by the operators.

3. Always remember that a cheap stock can become further cheaper and do not get fooled by the present price of the stocks as it may be feasible that the stock has been split and is having Rs 1 face value. Be wary of penny stocks due to non availability of information and liquidity.

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