Do you know low-ranking stocks (bolo stocks)?
What are low-ranking stocks (bolo stocks)
Low-ranking stocksis a stock with a low stock price level. Trading rules, trading hours, and order methods are no different from other stocks. The definition of low-ranking stocks may vary depending on the market.
1. Japan: 500 yen to 1,000 yen per share
2. US: less than $5 per share
3. Hong Kong: HK$1 or less per share
Characteristics of ultra-low ranking stocks —
1. Stock prices fluctuate greatly
2. Transaction volume is low and liquidity is low
3. Performance is sluggish due to some factors
Risks of ultra-low ranking stocks for individual investors
1. There is little information available to the public, and the company's history and achievements are also lacking.
2. The smaller the company, the higher the risk of delisting or bankruptcy.
3. Stocks that are rarely traded have poor liquidity, so there is a possibility that they will be difficult to sell even if profits are being made.
4. There is a high risk of price manipulation and fraud.
Please note:Before you start investing in low-ranking stocks, you need to fully understand the risks and make appropriate decisions according to your own investment style and goals.