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Penny stocks are those that trade at a very low price, have very low market capitalisation, are mostly illiquid, and are usually listed on a smaller exchange. Penny stocks in the Indian stock market can have prices below Rs 10. These stocks are very speculative in nature and are considered highly risky because of lack of liquidity, smaller number of shareholders, large bid-ask spreads and limited disclosure of information.
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Price rigging can be like simply raising the price per share by buying and selling within themselves to show that their share prices have high demand. Insider trading is using confidential information which are completely internal to get personal benefit. For example letting your relative know about a merging with another company which will increase the share price and dividing the profit amongst yourselves.
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Shruti Gupta 6 years, 3 months ago
1Thank You