Penny Stocks are shares of small companies that trade at very low prices, usually with low market capitalization and limited liquidity.
Penny Stocks are typically traded at low prices (often below ₹10–₹50 in India) and belong to small or emerging companies.
They are known for high volatility, meaning prices can rise or fall sharply in a short time. Due to lower regulation and transparency, they carry higher risk.
Trading in such stocks happens on exchanges like the National Stock Exchange and Bombay Stock Exchange under oversight of the Securities and Exchange Board of India.
"A stock trading at ₹5 that suddenly rises to ₹15 can give 3× returns—but it can also fall sharply."