• Vipin K Mishra
• Dr. CHANDRAKANT RABHAJI DEWARE

Penny stocks, generally characterized as shares trading below INR100, are recognized for their significant volatility, limited liquidity, and vulnerability to market manipulation. In India, nearly 90% of stocks fall under the classification of penny stocks according to this definition. Given their significant presence in the stock market, it is essential to investigate whether these stocks present an untapped investment opportunity or if they are justifiably overlooked. While equity market analysts may highlight specific stocks they consider promising, a comprehensive analysis of this asset class is notably lacking. While they offer the potential for substantial returns, they also present considerable risks for investors. This study investigates how the distinctive features of penny stocks affect investor behavior, market dynamics, and the overall stability of financial markets. Through the analysis of historical data and surveys conducted with market participants, the research aims to shed light on the risks and rewards associated with penny stock trading and its wider implications for financial markets.

penny stocks, comprehensive analysis, financial markets, stock market, trading

"HOW PENNY STOCK AFFECT STOCK MARKET INVESTMENT DECISION", International Journal of Emerging Technologies and Innovative Research (www.jetir.org), ISSN:2349-5162, Vol.11, Issue 12, page no.78-82, December-2024, Available :http://www.jetir.org/papers/JETIRGQ06011.pdf

"HOW PENNY STOCK AFFECT STOCK MARKET INVESTMENT DECISION", International Journal of Emerging Technologies and Innovative Research (www.jetir.org | UGC and issn Approved), ISSN:2349-5162, Vol.11, Issue 12, page no. pp78-82, December-2024, Available at : http://www.jetir.org/papers/JETIRGQ06011.pdf