Penny stocks have no theoretical definition. However, stocks priced in the single digits or less than Rs 10 are included in this category. Some typical characteristics of these stocks tend to be low promoter holding, huge debt, accumulated losses and poor dividend track record. According to market analysts, penny stocks increased higher during the bull market, attracting investors. However, those who join late and are duped do not have a chance to leave. Conservative investors are advised by market gurus to avoid penny stocks. Market operators can sometimes drive such stocks. They are prone to lower circuits as they collapse, making the exit quite hard for tiny investors.