Common stocks are stocks that are, well, common. When people usually talk about stocks, these are what they are referring to. Over the long term, common stocks, through capital growth, produce higher returns than almost all other investments. Favorite stocks are a little different. Preferred stock represents a certain degree of ownership within a company, but usually does not have the same voting rights. (This can vary depending on the company.) While preferred shares have advantages such as how preferred shareholders are paid off in the event of liquidation, these preferred shares are also callable, meaning that the company providing these shares has the ability to repurchase shares from shareholders at any time and for any reason. While these are the two main types of actions, it is also possible for businesses to customize different types of actions however they want. These shares may be classified as A Shares or Shares