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Stocks and penny shares are one of the ways in which investors try to make a return on their money in the stock market. They are in fact shares or constituent parts of a company split into equal parts. They are then bought and sold for profit. Penny stocks tend to be low priced stocks. Some people buy into stocks and shares just to invest in a large company, amateur investors do this to make moderate profits over time. Equally some people are larger investors who aim to have the controlling interest in a company, this happens when they buy the majority of the shares and become the majority shareholder. This is how some companies take each other over - by buying up enough shares so that they control the direction the company takes.