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  #1  
Old 2nd August 2011, 12:35 AM
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Default Birla Cotsyn (India)



I have some questions on this one. I'm still learning to trade.

1. Is this what they call a "Penny Stock"? If so, Why?
2. How do I find out the liquidity of this stock?
3. Is penny stocks hard to sell?
4. Will you buy 4000 of these stocks?
5. Am I a stupid to ask these questions? (Kidding :P, Dont answer this one)
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  #2  
Old 2nd August 2011, 10:27 PM
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Quote:
Originally Posted by ashyankee View Post
I have some questions on this one. I'm still learning to trade.

1. Is this what they call a "Penny Stock"? If so, Why?
2. How do I find out the liquidity of this stock?
3. Is penny stocks hard to sell?
4. Will you buy 4000 of these stocks?
5. Am I a stupid to ask these questions? (Kidding :P, Dont answer this one)
Though ill try to explain what i know but technically i might be wrong.But i guess with the explanation fundamental of the understanding will be clear.

Also ill answer those whose answer i know

1::Any stock trading below 10 rs is consider to be penny.It means you throw a penny and you get the stock.In short cheap stock.

2::Mostly penny stocks are available on bse.So check its site for details and also moneycontrol and other sites do provide financial details too.

3::It might be hard if it gets unlisted .But if its still listed it not be hard but getting your price say you bought it at 6 and presently trading at 3 and you wanting atleast 5 .Than its tough to sell.

4:: Depends on rish appetite.I have kept 10000 aside to trade in penny.
It depnds on which penny i trade.I remebered i bought this penny stock tatia global ventures for 7 .400 stocks .And cleared all my holding at 19 around.But the stock ran on news of split to 10.And went upto 256 and than splitted and now again trading at those 7 levels again.If i had waited my 6000 could have converted to 1 lakh 2000 in 18 months.But than again here is another stock from house of birla.Zenith birla i invested in 100 stock for 27rupees and now it turned penny .Yesterday only i bought more 200 and now i have 300 shares worth rupees 12.But i wont be surprised it if it turns to birla cotysn level .This stock is pledged thats why getting beated.Risk is very high in penny.If by one stock 5000 converts to 1 lakh.Than when you invest 50000 in 3 penny it might turn into 10000.


Note::Birla cotysyn have more than 200 crore shares floating .Similarly cals refineries 800 crore shares.So many shares its bound to trade below 1 level i feel on personal level.They can be easily manipulated by person holding 2-5 crore shares.
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Old 3rd August 2011, 08:52 AM
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Originally Posted by magnet View Post
1::Any stock trading below 10 rs is consider to be penny.It means you throw a penny and you get the stock.In short cheap stock.
Whether is it a penny stock or not, is decided by the Market Capitalization. It is not based on the share price.
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Old 3rd August 2011, 06:43 PM
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Originally Posted by paran View Post
Whether is it a penny stock or not, is decided by the Market Capitalization. It is not based on the share price.
Hmm thanks for correcting.But i still doubt same as on wiki i means same on my lines

http://en.wikipedia.org/wiki/Penny_stock

Than how much should market capitalization be to call it penny.I have seen some company stock around 40 but market caps hardly a crore is that what is called penny?
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Old 3rd August 2011, 09:07 PM
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Penny stock is also called 'chillar stock',i.e.the price is so low that you can buy it with a few pennies or below $1.

A penny is one cent,100 cents make a dollar,a similar equivalent would be 1 paisa.

The term penny stock refers to the pricing of the stock,but most penny stocks are also micro-caps.

According to the Securities and Exchange Commission,any stock that is below $5 can be considered a penny stock,that is why Citigroup did a reverse 10 to 1 split to get its shares to a more 'respectable' price level.

In the Indian context,

1.Any stock below Rs 10 is generally labeled as a penny stock.

2.Micro-caps are stocks with market cap of less than Rs 100 Crores.

These stocks are more vulnerable to price manipulation due to low liquidity(be careful of unscrupulous Blogs,Tweets,SMSes etc.),also
there is very little information on these companies available in the public domain.

I believe that micro-caps should not be ignored and would like to draw a qualitative difference between a penny stock and a micro-cap,quality micro-cap stocks can give you opportunities to generate great returns if you can find them.
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  #6  
Old 4th August 2011, 07:49 AM
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Originally Posted by magnet View Post
Than how much should market capitalization be to call it penny.I have seen some company stock around 40 but market caps hardly a crore is that what is called penny?
I should have done some home work before posting.

Anyway below is the information about penny stock

Quote:
there is no generally accepted definition of a penny stock
What Does Penny Stock Mean?
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  #7  
Old 4th August 2011, 04:11 PM
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I will suggest you to refer this article for ur all queries.

5 things you MUST check about a penny stock before buying -
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