Why do people avoid penny stocks?

[PERIYASAMY K P]

penny stocks have less demand and supply.liquidity and stock manipulation is low.so people avoid penny stocks.

[SUNIL]

Penny stocks are least traded and hence buyers are few to get .

Element of high risk and getting out is difficcult.

 

[PEBAM DEEPAK]

Penny stocks:  Stock with low value, indicates low demand, generally it pertains to small companies. hence risk is more.

[Lokesh Padmanaban]

penny stock are stocks whos share is trade for lower value and risk is high where demand and supply is low.

[B Vishnuteja]

Penny stocks are traded less which increases the chance to manipulate its price by the few people who own them.

For this reason penny stocks become highly speculative and are avoided by the traders.

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