India, July 3 -- It is the dream of every investor, in fact, every human being to become rich overnight. But sudden riches can only come through speculation. One of the many ways of generating higher returns with lower initial investment is by investing in penny stocks. These are common shares of small public companies or public firms turned private that trade at low prices per share. A penny stock refers to a small company's stock that typically trades for less than $5 per share. In India, they are defined as those stocks which trade at a very low price ie Rs 10 or Rs 5 or less.
Although these stocks have very low entry costs, they are potentially very risky. To begin with, penny stocks have very low market capitalisation, trading volume,...