Shares below Rs 5 in India are often considered to be priced very low, and may even be viewed as risky investments by some investors. But why are these shares priced so low in the first place? There are a number of factors that can contribute to the low prices of these shares.
One of the main reasons why shares below Rs 5 may be priced so low is simply because they are not very popular or well-known among investors. These shares may belong to relatively small or unknown companies, or may be issued by companies that are struggling financially. As a result, there may be less demand for these shares, which can drive down their prices.
Another reason why shares below Rs 5 may be priced so low is because they may have a high level of risk associated with them. These shares may be issued by companies that are in a very competitive industry, or that are facing financial difficulties. As a result, investors may be hesitant to invest in these shares, which can cause their prices to drop.
Finally, the low prices of shares below Rs 5 may also be due to the fact that they are not traded very frequently. In some cases, these shares may only be traded a few times a week, or even less frequently. This can make it difficult for investors to buy or sell these shares, which can further depress their prices.
Overall, shares below Rs 5 in India are priced low for a variety of reasons. While some investors may see these shares as risky or unattractive investments, others may see them as an opportunity to buy low and potentially earn high returns in the future. As with any investment, it's important to do your research and carefully consider the risks and potential rewards before investing in shares below Rs 5.