what are penny stocks? penny stocks benefits and disadvantage – penny stock-cashermaking
Today I am going to tell you what are penny stocks? How Penny Stocks Work How You Can Make A Profit From Penny Stocks And I’ll Tell You The Benefits And Some Losses Of Penny Stocks. In today’s article you will find full details about penny so let’s get started.
#1:Stock Market Detail
- What Is Penny Stock? Penny Stock Benefits & All Details.
- Concept And Secret Of Stock Market
Penny stocks are stocks with values ranging from 2pkr to 20,000. Very little investment can give you more profit. With this, we will talk about some concepts of the stock market like what is market cap? And how do a company’s stock prices rise and fall? Today I will tell you in full detail.
Friends, you must have heard the name “Rakesh jhunjhunwala”. Who has made a lot of money through investment in India? He has made the biggest investment of his life in titan company. He had invested in this company in 2003. When the stock price of this company was 3.00pkr and now the stock price of this company is 1500 rupees. So this investment has gone up 500x so far.
You will hear many such stories that if you had invested Rs.1000 in any company you could have made a lot of money like you have earned from a titan company. But the problem is how do we find such stocks because all the good companies in the stock market have a stock price above Rs.1000. So we lagged in investment. I will tell you how you can make a lot of money through the stock market. The secret of the stock market will tell you.
#2:What Is Penny Stock?
Like in Pakistan there is the rupee and if we do 100 pieces of one rupee then it is 1 paisa. Similarly, “US” has $1. If you make 100 pieces of $1, it will become a penny. So penny-stock means that their price is very low. Depending on the Pakistani market, some stocks are priced from Rs. For example, if you invest Rs 20,000 in such a company, you will get more than 1 lakh shares.
We do not know how this company will perform in the feature. How fast can this company grow? But still, people invest in such stocks just because they get a lot of shares. If you invest in a good company then you will be able to buy one share for 20 thousand and you will not like how you can create your wealth from this share. And for some, as a baby gets older, he or she will outgrow this.
But today I will tell you an interesting thing. In the beginning, I gave the example of an Indian investor who bought a share of the company at 3.00 but at that time the share price was 70 rupees. Now if you guys search on google you will find that at that time the stock price was only 3 rupees. So let me tell you how it happened, the reason is that the company splits its stock. I have written the whole article on what we call stock split. The link is here. Be sure to go and read what is split stock? What is a bonus share? And what is the Righ Share link click here and read?
What happens is that the company divides its share into a few pieces. Read the full article on why stock spit is so important. The company split the stock so that it could make the entire public investment. Because the share of any company is expensive then you can’t invest less money in it then you have to buy one share. Like Warren Buffett’s company share is very expensive. 40,000000 rupees so you can’t notice each other but in the USA you can also invest 1000 rupees and you can also invest 1%.
Warren Buffett never split your shares because the United States has the option to buy fractional shares. But not in India and Pakistan. This means you can invest up to $ 1 in any company, no matter how expensive it is. So if you invest 1% in Warren Buffett’s company you will get 0.0001 something share. So if you want to buy 10,000 shares in Pakistan India then you can’t buy 10,000 shares so the stock is split.
#3:Stock Market Full Gauid & Explain
When a company issues an IPO, it means that when a company launches a share for the first time, its share starts from 200, but what happens is that the company’s share goes from Rs 200 to Rs 2. Even if the market crashes, it only comes down to a maximum of 50%, but how can the stock fall so much? So this tells us that the stock price goes down because it gets stuck in a bad company situation. The company is not running its business or its promoters have run away or it is heavily indebted.
A company that has become too risky. When you are new to the stock market or you do not know how to analyze the market, you have not invested anywhere in your life except FD. So you should take more or less risk but the problem with friends is that nobody talks about risk. There are very few people who can guide you in the right way so I have made a whole list on the stock market where you are being guided correctly. Please visit and read all the articles.
Because those who have knowledge of the stock market think only of themselves. If you go to any platform and search for a penny or anything, you will find a lot of stocks that have nothing but losses. I have written a lot of articles on the stock market where I have given you a fundamental analysis and a lot of things that you should know about the stock market. You must read all my articles so that you can understand step by step how the market works.
In another article, I will write about penny stocks. You must visit my website and also read this article. Should we buy penny stocks today in this article I have told you some of the benefits of drinking stock and how the stock market works and how you should invest in it. So you must read my article and I have given the link to this article above. You will definitely go and learn what is this split stock, what is the right share and what is bonus share. You must read this article.