Penny Stocks

In stock market there are stocks which trade for 70k and there are stocks which trade for 70 paise :-)

Welcome to the world of Penny Stocks also very well known as micro cap. These stocks are mostly priced between 1 and 5 Rupees.

So what is the benefits of Penny Stocks ? Its damn cheap, you have thousand rupees with which you can buy thousand shares. If that one rupee stock moves up to 30 or 40 rs. you get 40,000. These calculations sound really sweet, wow 40 thousand, is it possible ? Yes it is possible. The greedy mind in all of us says "Why just buy 1000 shares? Buy more of it ;-) " Yes you could do that but hold that thought right there, what about the important factor known as "Risk". Yes the more the profitability the higher the risk.

Has anyone been profited ? Yes as usual a reference in history; below is the content i read in Wikipedia.

"Sir John Marks Templeton was an investor and mutual fund pioneer.He is noted for buying 100 shares of each company for less than $1 ($16 in current dollar terms) a share in 1939 and making many times the money back in a 4 year period."
- http://en.wikipedia.org/wiki/John_Templeton

Some may say that this is kind of lottery game/ gambling/ ... fill whatever it is. Even in these penny stocks one could do some fundamental analysis and buy those.

Some would like to know some penny stocks that are being traded currently in the market. Check the below link:
http://nse2rich.com/biggest-list-bse-indian-penny-stocks-between-rs-1-and-rs-5-on-24-02-2010/

After all whats the big deal is betting 1000 bucks in ten shares and wait for 5 years ??? I leave that decision to you, its your hard earned money so you know what to do with it.