Common Stock: Basic Ownership and Voting Rights Common stock represents ownership in a company and provides voting rights in corporate decisions. Investors benefit from potential capital appreciation and dividends.

Preferred Stock: Priority and Fixed Dividends Preferred stockholders enjoy higher priority in receiving dividends and assets during liquidation. They often receive fixed dividend payments, providing a stable income stream.

Growth Stocks: Potential for High Returns Growth stocks belong to companies with strong growth prospects. Investors seek capital appreciation rather than immediate dividends. They often invest in innovative industries.

Value Stocks: Undervalued Opportunities Value stocks are considered undervalued by the market. Investors seek stocks trading below their intrinsic value, anticipating future price appreciation and potential dividends.

Dividend Stocks: Regular Income and Stability Dividend stocks distribute a portion of company earnings to shareholders as regular dividend payments. They provide a steady income stream and are favored by income-focused investors.

Blue-Chip Stocks: Stability and Reliability Blue-chip stocks belong to large, established companies with a history of stable earnings and dividends. They are known for their reliability and are considered safer investments.

Small-Cap, Mid-Cap, and Large-Cap Stocks: Market Capitalization Categories Stocks are classified based on market capitalization. Small-cap stocks have a smaller market value, mid-cap stocks fall in the middle, and large-cap stocks are large, well-established companies.

Building a Diverse Portfolio: Combining Stock Types Investors aim for diversification by incorporating different stock types. A well-rounded portfolio may include a mix of common, preferred, growth, value, and dividend stocks for balanced returns.