I've been thinking a lot about this lately, and I believe it's something many people don't fully understand. Most people think all stocks are the same, but the reality is there are significant differences between common stocks and other types issued by companies.

Let's see, when a company goes public, it can mainly issue two types: common stocks and preferred stocks. Each has its own logic and attracts different investors. Common stocks are the most well-known, the ones most of us buy. They give you voting rights at shareholder meetings, meaning you can have a say in important company decisions. The thing is, the dividends you receive will vary depending on how well the company performs, and in case of bankruptcy, you're among the last to get paid.

On the other hand are preferred stocks, which work quite differently. They generally do not give you voting rights, but in exchange, they offer more stable and predictable dividends, often fixed. If the company goes bankrupt, you have priority over common shareholders to recover your investment. There are several variants of preferred stocks: some accumulate unpaid dividends, others are convertible into common stocks, and some can be repurchased by the company.

The fundamental difference lies in the investor profile. If you're looking for influence in the company and are willing to take on more risk in exchange for higher potential gains, common stocks are your option. They are more liquid, allow quick transactions, and offer considerable growth potential. But beware, volatility is high, and dividends can be null in bad years.

If what you want is stability and predictable income flow, preferred stocks suit your profile better. They are ideal if you're close to retirement or simply prefer to sleep peacefully knowing your dividends are more secure. The downside is that the growth potential is limited, and they tend to be less liquid.

To buy either of these types, you need a regulated broker. The process is simple: open an account, deposit funds, carefully analyze the company you're interested in, and place your order. You can go at the market price or set your own price. You can even trade CFDs on these stocks if your broker offers it.

My personal recommendation is not to stick to just one type. Mix common stocks with preferred stocks according to your situation. If you're young, you can afford more risk with common stocks. If you're seeking regular income, preferred stocks are your allies. The important thing is to monitor periodically and adjust your strategy when the market changes.

The reality is that the preferred stock market accounts for almost 71% of the preferred segment in the U.S., so it's not marginal. Looking at the history, the contrast between how common stocks versus preferred stocks behave is interesting: while the S&P 500 rose 57.60% in five years, the preferred index fell 18.05% in the same period. This reflects how they respond differently to changes in interest rates and economic conditions. So, before investing, ask yourself what you really need: aggressive growth or stable income. That answer will tell you which type of common or preferred stocks best fit your portfolio.