Stock Markets Exposed

Why is investing in penny stocks very risky?

Public Comments

1. thin markets..big spreads between bid and ask,,,,,poor information flow...............no value to the companies..............fixed a lot..............
2. Most companies undergo growing pains -- some fail.
3. I think in the first place, no one is voting with their money on the stock. Principle more supply than demand.
4. Unlike Blue Chip stock Even a few crore of money can have a drastic effect on the penny stock the growth are rapid as well as the fall,so that is why it is risky as well as profitable.