Top 10 Factors Affecting Penny Stock Prices
1. Free market activity – One of the best factors that influence penny CHTP stock price is the free market activity of the particular stock being exchanged. On the off chance that there is more supply than request the stock will for the most part diminish in cost because of this reality, and if there are a larger number of purchasers than venders the cost will go up.
2. Profit Report Release – The cost of all stocks will change progressively when it is the ideal opportunity for the organization to discharge the income report. This report must be discharged by each organization at regular intervals if the organization is recorded. In the event that the organization has desires of a solid report and income then the stock cost will as a rule go up and a feeble profit desire can bring down the cost of the stock.
3. Potential Merger or Takeover Activity and Rumors – If a merger or organization takeover is suspected or declared then this factor will influence the stock esteem and make the cost vacillate. A speculated merger or other action can cause the cost of the penny stock to go in any case.
4. News That Relates To The Underlying Company Value – Any news that identifies with the basic organization esteem or hazard will influence the penny stock prices for the organization. News which is good to the organization will regularly make prices rise and news that is horrible will bring down the stock cost.
5. News Concerning Company Competitors – News which concerns the primary contenders of an organization will likewise influence the cost of the organization stock. In the event that a contender picks up a patent or endorsement for a contending item then the cost of the organization stock will normally slide while the contending stock will go up.
6. Joblessness Data – Unemployment is one of the key financial markers that will influence the cost of all stocks, regardless of whether the stock is a penny decision or an expansive top organization. High joblessness for the most part has a tendency to bring the whole stock market down while low joblessness numbers support the market and individual stock prices.
7. Shopper Confidence – One factor that influences penny stock prices is purchaser certainty. At the point when financial specialists are sure about the current monetary circumstance they will probably purchase stocks and this influences the free market activity condition. On the off chance that buyers are dreadful of the financial circumstance then they tend to clutch speculation capital as opposed to purchasing stocks.
8. Worldwide Events – Events around the globe can influence the cost of any stock. A common war in Mogadishu or political agitation in the Middle East can make the whole worldwide economy move, and many stock prices will vacillate subsequently also.
9. Arrival of The Gross Domestic Product Figures – The GDP assumes a huge part in stock prices and market action. In the event that the gross residential undertaking figures are frail or propose monetary vulnerability then the market and individual stock prices may diminish fundamentally.
10. Venture Scams – Investment tricks are a best factor that influences penny stock prices. A standout amongst the most widely recognized tricks is known as the Pump and Dump, and this includes deceitful dealers who make talk to get financial specialists in and misleadingly blow up the estimation of the stock. Once the cost is swelled the financial specialist will dump the stock and surge the market which makes the value drop.