Different types of stocks and stock classifications are suitable for different types of investors. While stocks like Facebook and Amazon, which are categorized as common stocks, grab headlines on financial news networks, other types of stocks called preferred stocks may be a better bet for more risk-averse investors.. Depending on your appetite for risk, different stock classifications may be Part 2: Types of Common StocksIn Part 1 of Common Stock, we saw that stock represents an equity share, or ownership, in a company. We also discussed some of the advantages and disadvantages of owning common stock. Let’s continue by looking at the various types of common stock that are