At worst, the entire amount invested can be lost, but no more than the amount invested. Shareholders are not responsible for corporate debts. For their part, corporations typically take the money received by selling stock and use it to build or expand their business. Preferred Stock Preferred stocks are also ownership shares issued by a corporation and traded by investors. Preferred stocks are different from common stocks in many ways, but typically preferred stocks have less risk but also limited reward compared to common stocks.
Some corporations issue different classes of stock.
These different classes can be either common or preferred shares, and they will have different terms and characteristics, sell at different prices, and may have different dividend and ownership properties. As a general rule, all U.S. stocks that have an active quote and trading market are available for purchase and sale over the Internet using your account.