Get Rich Quickly Secrets Hidden in What are Stocks
Types of Stocks: Choosing the Right Fit for Your Portfolio
Stocks are generally categorized into two main types: common and preferred. Common stocks give shareholders voting rights but come with higher volatility, meaning their value can fluctuate more dramatically. Preferred stocks, on the other hand, offer fixed dividends and have priority over common stocks in the event of a bankruptcy2. Depending on your financial goals, risk tolerance, and investment horizon, you may choose to diversify your portfolio with a mix of both types.