Over the long-term, stocks are the best vehicle for overcoming inflation and building wealth. Types of stock Common Stock - Common stock is the most commonly issued type of stock. It gives the investor a portion of ownership in the company, as well as voting rights. In addition, the dividends on preferred shares must be paid before dividends on common shares, and the stockholders also have a greater chance of getting a portion of their investment back if the company fails. In exchange for this additional security, preferred stockholders generally experience less price appreciation than common stockholders of the same company.
Some corporations also issue different classes of stock.
Different classes sell at different prices, have different dividends or restrictions, or represent ownership in different portions of the company. The price of a stock in the market changes constantly. Changes can be due to market conditions, company and industry announcements, investor perceptions, and many other factors. Company size is usually classified based on market capitalization. Market capitalization is the total value of the company's shares in the marketplace and is defined as current price per share times number of shares outstanding.