penny stock may vary but the Securities exchange commission (SEC) classifies penny stocks as companies traded under 5 dollars and many of them, if maintained above 1 dollar are still traded on the NASDAQ or the NYSE, the more regulated stock exchanges.
The more money you have in circulation the less its worth would be and that’s a problem.
For example if a massive inflation takes place and an average person, David has a million dollars but that million dollars actually worth is only to buy an apple. Then in this case the worth of a million dollar has gone down. The loss of purchasing power at a time is called inflation and when inflation gets out of hand money becomes worthless.
SENSEX is the oldest market index and includes shares from the top 30 companies listed on the Bombay Stock Exchange. It represents 45 % of the index’s free-float market capitalization.
NIFTY, on the other hand, includes the shares from the top 50 companies listed on the National Stock Exchange representing around 62% of the index’s market free-float capitalization.