Common Stock vs. Preferred Stock
Businesses raise money from investors by selling stock in one of two flavors: common stock or preferred stock. Both common stock and preferred stock can be worthwhile investments, and you can find both types of stock on major exchanges.
There are many differences between common and preferred stock, though, and depending on your needs, one type of stock may be a more suitable choice for you than the other. Even though its name might suggest that preferred stock is a better investment, most investors should focus on common stock because of its potential for unlimited growth.
Common stock gives investors partial ownership in a company. Many companies exclusively issue common stock to investors, and there's a lot more common stock available on stock exchanges than preferred stock.
Source Fool.com
