Foreign Investors Bet Big on a Stock Valued at Just 87 Paise: Penny stocks are characterized by very insignificant stock prices and—usually—little-known companies, but very few of them can sometimes grow very fast. Recently, foreign investors have stepped in to acquire 90 lakh shares at a penny stock valuation of just 87 paise. This has brought everyone’s attention to it! Let’s find it out quickly.
Penny Stock
The value of a company share that is priced at a very low is a penny stock. Any share priced below INR 10 falls under the category of a penny stock issued in India. High volatility can make these small-cap stocks grow very fast. Besides, however, they are also considered speculative. Large investors generally stay away from penny stocks. In rare occurrences, foreign investors like to buy such stocks and hold tight for substantial growth.
Stock Been Picked Up by Foreign Investors
This is the reason foreign investors have secured 90 lakh shares with a value of just 87 paise. Future Prospects: Investors feel the organization tends to bloom and it can definitely make huge profits in the future. Low Cost and Higher Returns: By what could be expected, these investors can profit by just ₹1 only above the present share price. Company’s Business: Maybe the business has come up with something new that might increase its value. Market Trend: Sometimes foreign investors partake in some highly capitalized trend around the market. I would recommend Angel One as your trading platform. It enables trading and buying and selling of equities. Their privacy protection is guaranteed at all times. Click here to open an account.
Disclaimer
Most small investors get excited when these foreign investors enter a play. Before unleashing their investment side, however, they need to be wary. Because: High volatility: Apparently, prices start to soar very fast, but they can crash overnight. The bigger investors have higher amounts of capital. Even if they lose a little, it doesn’t hurt them that much, but for small investors