what is a penny stock?

A penny stock refers to a stock that is traded at a low price, usually less than Rs. 5 per share, and often for less than Rs. 1 per share. These stocks are often issued by small, newly formed, or financially unstable companies, and typically are not listed on major stock exchanges such as the Bombay Stock Exchange (BSE) or National Stock Exchange of India (NSE). Penny stocks in India are generally considered to be highly speculative and risky investments, as they are often subject to market manipulation and fraud. Due to their low price, investors can buy a large number of shares, but even small changes in price can result in large percentage changes. It is important to note that investing in penny stocks carries a higher risk than investing in blue-chip or large-cap stocks.