Your investing questions, our clear answers.

Our response:

There are two main types of stocks: common and preferred.

The majority of stocks sold are common stocks. Common stock offers the potential for growth through rising share prices and increasing dividends. Owning a company’s common stock will also generally allow you to vote on corporate issues like board elections. If the company becomes bankrupt, common stock owners are typically last in priority to get their money back, if any remain. Preferred stock offers regular income through fixed dividends and the potential for growth through rising share prices. The prices of preferred stock tend to be more stable than the prices of common stock. Preferred stock holders typically do not have voting rights. If the company becomes bankrupt, preferred stock owners may redeem their shares before common stock owners if there are funds available.

Speak with a registered financial representative for investment advice.