Penny stock under ₹5: Five foreign companies buy stake during Q2 FY25. Do you own? | Stock Market News – Mint

Five foreign companies have recently purchased stakes in penny stocks priced under ₹5 during the second quarter of the fiscal year 2025. This news has sparked curiosity among investors about whether they should also consider owning these penny stocks.

The companies involved in these transactions have not been disclosed, but the fact that foreign entities are showing interest in these low-priced stocks is noteworthy. Penny stocks, typically priced under ₹5, can offer high potential returns but also come with high risks due to their volatile nature.

Investors should exercise caution when considering investing in penny stocks, as they are often more susceptible to market fluctuations and may not have the same level of liquidity as larger, more established companies. It is important to thoroughly research any penny stock before making an investment decision.

Ultimately, whether or not to own penny stocks priced under ₹5 is a personal decision that should be made based on individual risk tolerance and investment goals. It is always recommended to consult with a financial advisor before making any investment decisions in the stock market.