There are two main types of Stocks.
1> Common Stock
Common Stock is the most popular type of stock. After buying the common Stock you get
Ownership in the company
Voting rights (you can vote in company decisions)
Possible dividends (profit sharing)
Common Stock have high risk and reward ratio then preferred Stock.
In Common Stock the share price can go up or down more quickly as compare to Preferred Stock. There dividend are also flexible it maybe increase or decrease.
2> Preferred Stock
This is the most stable type of Stock as compare to common stock. After buying the Preferred Stock you get
Fixed dividend (regular income)
Paid before common shareholders
Usually no voting rights
Preferred Stock have a very low risk and reward ratio as compare to common stock.
In Preferred Stock the share price move slowly and there dividend are also fixed as well as if the company get bankrupted so the preferred stock holder is going to receive there payment first.