By definition, the term ‘penny stocks’ is used for shares that usually have low prices. These values are typically lower than Rs. 50. However, a defining characteristic of penny stocks is that they have the inherent potential to be high-value and high-growth investments. Several penny stocks with a high share of promoter holdings attract investor attention. However, investing in penny stocks with a high share of promoter holding necessitates intense research, a high level of risk appetite, and, most importantly, patience. This is because the prices of penny stocks are prone to manipulation, fraud, and a high level of volatility.
This article will discuss the meaning of high promoter holding penny stocks, give a brief overview of the high promoter holding penny stocks, the benefits and steps of investing in them, and which factors to be mindful of before investing in such stocks.