Common stocks can be categorized based on various factors: - Growth Stocks: These stocks belong to companies expected to grow at an above-average rate compared to other companies. They often reinvest earnings into the business rather than paying dividends. - Value Stocks: These stocks are considered undervalued based on fundamental analysis and are often priced lower than their intrinsic value. - Income Stocks: These stocks pay regular dividends and are often from well-established companies with stable earnings.