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    Question

    Which of the following is correct about penny stocks?

    i. The market price of the penny stocks is very low ii. There is very high volatility and speculation in the penny stock iii. Trading is generally low in penny stocks iv Stock exchange offers discount to promote trading in penny stocks
    A Only i and ii Correct Answer Incorrect Answer
    B Only i, ii and iii Correct Answer Incorrect Answer
    C Only iii and iv Correct Answer Incorrect Answer
    D Only i, ii and iv Correct Answer Incorrect Answer
    E All of the above Correct Answer Incorrect Answer

    Solution

    Penny stocks are stocks that are available at the price of a penny. It is a very Low stock cost in range of Rs.1 to Rs.10. The Market capitalization of company is less than 100 Cr. These stocks are highly speculative stocks of small companies. Penny stocks are typically growing company with limited cash and resources.

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