Although different cut-offs have been set under varied norms, Penny stocks are the ones that are valued less than A$1 as per standard that may be?customised while US follows $5.
They have a low market capitalization varying between A$50 million and A$300 million.
Investing in penny stocks can offer higher returns. Clients with high- risk appetite usually invest in penny or micro-cap or nano shares.
These shares offer unprecedented growth opportunities because small companies can possibly turn into multi-baggers, once their business model is proven, and operational or product development & monetization is attained in due course.
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