Firemans Contractors, Inc. (FRCN)

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There are significant differences between common and preferred stock. Generally, you will want to issue common stock to founders and employees through the employee stock option program and offer preferred stock to investors. This type of stock is what is traded through the OTC markets for example.

Common stock should be thought of as a vehicle for issuance in exchange for effort, or "sweat equity." Preferred stock has preferential rights in matters such as liquidation and board representation. These are rights generally reserved for those who have invested cash in the business.

Source: http://www.allbusiness.com/business-planning/business-structures-incorporation-stock/792-1.html#ixzz20VjOIK6Z