Over the past month, as many as 13 penny stocks have witnessed steep sell-offs, with share prices plunging between 25% and 50%. The filter was designed to highlight low-priced but actively traded penny stocks that have seen sharp erosion in value. (Data source: ACE Equity)While penny stocks often lure investors with low entry costs and the promise of quick gains, they carry elevated risks. Thin liquidity, high volatility, limited disclosures, and susceptibility to price manipulation make them vulnerable to abrupt declines. Without a disciplined approach and robust risk management, investors risk suffering outsized losses rather than meaningful returns.

Source: Economic Times January 11, 2026 10:24 UTC