The stock market is a place where investors can buy and sell long term securities. Thus for new investors, it is very important to know the different types of stock available in the market. These stocks are generally traded in different markets or different stock markets.
The different types of stock include common stocks and preferred stocks. A common stock can also be referred as the basic stock of a company because it is affected directly by fluctuations in the profit or loss of the company. These stocks are generally issued to employees of a company and even though these stocks are very risky it can yield more profit. The reason for this is because these stocks do not have any fixed dividends attached to them.
Preferred stocks are given only to selected stakeholders that carry fixed dividends attached with them and the dividends are paid to the stakeholders at regular intervals.