You need to understand the two different types of stocks when learning how to invest in the stock market. The first type, called common stock or equities, allows you to vote on how the company operates based on how many shares you own and the type of share. The second large type of share is preferred shares. These stocks have different terms spelled out when the stock was first available. Generally, owners of preferred stocks receive a more significant dividend if the company pays one. Keep in mind that when learning how to start buying stocks, you do not purchase the stock from the company unless it is an IPO. Instead, you buy the stock from an individual who has decided that it is time to sell that stock.