A penny Stock Refers to a stock with a relatively low price and market capitalization. In India, Stock trading under Rs 10 are categorized as penny stocks.

These shares typically have a smaller shareholder base wider bid-ask spreads, and limited information disclosure.

Due to their low liquidity, these stocks are susceptible to price manipulation. large purchases of share can cause price spikes, while selling off shares can lead to price declines

Penny stocks exhibit heightened volatility, offering both increased potential for reward and heightened risk.

Due to susceptibility to price manipulation, these stocks carry additional risk such as sudden delisting and regulatory scrutiny. (with inputs from centre for investment Education and learning Content which appeared in Economic Time)