Penny stocks are low-priced stocks that typically have low market capitalization and liquidity and are often listed on smaller exchanges. In India, penny stocks can be priced below Rs 10. Some top Indian penny stocks include Vodafone Idea Ltd, NHPC Ltd, and Morepen Laboratories. Penny stocks are very risky investments due to their high volatility, potential for pump-and-dump and short-and-distort schemes, and mistakes made by inexperienced traders such as lack of a trading plan or getting caught up in hype. However, penny stocks also offer the potential for high returns due to their low costs.

1. Penny Stocks

2. What is Penny Stock?
◉ Penny stocks are a form of market
traded security that are traded at a
very low price, have very low market
capitalization, are mostly illiquid, and
are usually listed on a smaller
exchange.
◉ In Indian stock market, Penny
Stocks can have prices below Rs
10.
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3. SOME OF THE BEST PENNY STOCKS IN INDIA
◉ Vodafone Idea Ltd
◉ NHPC Ltd
◉ Morepen Laboratories
◉ Manali Petrochemical Ltd
◉ HBL Power systems Ltd
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4. Penny stocks market cap size -
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5. Misconceptions related to Penny stocks -
◉ A large company today was once a penny stock.
◉ Penny stocks are short cut to make money.
◉ Good companies are overpriced and don’t make money.
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6. Mistakes Penny stock traders make -
◉ Stocks are risky by default
◉ Not having a trading plan
◉ Lack of confidence
◉ Having the wrong mentality
◉ Getting trapped in the hype
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7. Risk associated with Penny stocks -
A. High volatility and liquidity:
a. Price fluctuates from high to low at rapid space
b. Less liquid in nature
c. Volatility can be measured with
i. Standard deviation
ii. Bollinger Band
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8. Bollinger Bands
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9. B. Pump and Dump:
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10. C. Short and Distort scams:
a. Opposite of pump and dump scheme
b. Use of short selling to make a profit
c. Price is made to fall by spreading false negative news
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11. Benefits of Investing in Penny stocks -
◉ High returns
◉ Low cost
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12. Thank You
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