2025, Vol. 8, Issue 1

author(s)
M Aghilesh and P Balakrishnan

abstract
Penny stocks have become popular among retail investors due to their low stock prices and high market instability in the Indian market. Investors wishing to speculate while hoping for capital growth along with those interested in economical stock acquisition select these risky stocks despite market trade restrictions. This research paper studies how investor’s view penny stocks by analysing their behaviour. The research gathers data using primary sources together with secondary materials to determine demographic patterns alongside psychological elements which affect these investments. Market research reveals an increasing number of investors picking up penny stocks with a special focus on younger technology-oriented participants who make decisions based on insufficient facts and risky speculation. The final part proposes recommendations to strengthen investor instruction programs and improve market monitoring systems which will reduce potential risks while improving decision-making abilities in penny stock investments throughout Indian capital markets.