Personal Finance 1307

Stock is split into two main categories – common stock and preferred stock.  Most stock is common stock which gives their holder voting rights in the company.  Dividends can vary quite a bit and are not guarantee.  Furthermore, if the company goes bankrupt, common stock holders are the last to be paid off.  However, common stock is an attractive investment because long-term common stock will provide a greater return than almost any other investment.  As discussed previously, this higher return comes with higher risk.