There are mainly two types of stocks: common stocks and preferred stocks. Common stocks give you ownership in a company and voting rights. If the company does well, the stock price can go up, and you might receive dividends. For example, if you invest in 10 shares of a company at $50 each, your total investment is $500. If the company's stock price rises to $70 per share, your investment is now worth $700. Preferred stocks typically don’t come with voting rights but have a higher claim on assets and dividends compared to common stocks. They tend to be less volatile but may not appreciate in value as quickly as common stocks.

Common stocks represent ownership in a company and typically allow shareholders to vote on major decisions, such as electing the board of directors. This ownership means that shareholders can benefit from the company’s growth and profitability, usually through an increase in stock price and dividends.