a doubt..

Greeting friends,

I am quite a newbie in the stock trading world. I wanted to know, how to make
out whether a particular stock is a penny stock/operator driven stock.

Please pardon my ignorance.

Warm regards.

The market capital of the company gives you a good idea

Thanks and Regards
Supratik

Mostly stocks trading at Below-Par values are called Penny Stocks.

Thanks for your prompt reply...

Supratik - by market cap ... how much is the threshold value..?

harmads - below par ... means below 20 - 25 as the face value ?

Also how much minimum volume should the stock be trading at, so as to be
considered safe for liquidity..?

1)Low face value (frequent splits)
2) Below face value prices (not when its moving up though)
3) Ckt to ckt movement
4) Low promoter holding
5) Huge other income component
6) Zero/negative operating cash flows (but positive net cash flows)
7) Large amount in balance sheet under 'investments'
8) frequent equity dilution

discount prices indicates

stocks/market is heading for a bigger crash

DEKHA

Tomorrow see big bounce back, US is trading strongly among huge volumes today