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There are two basic types of stem cells; embryonic and somatic (adult).  
Embryonic stem cells are found in the placenta and embryo.  These cells are called totipotent, which means they have the ability to reproduce into any mature cell type.  While embryonic stem cells offer the greatest potential in healing, there are obviously moral and ethical concerns in harvesting these cells.  

The second type of stem cell is the adult stem cell.  These stem cells are called multipotent, which means they can differentiate into closely related cell lines, but they are not capable of creating a complete organ.  Adult stem cells are found in the bone marrow, adipose tissue (fat), skin, liver, blood vessels, and neurons.  Contrary to embryonic stem cells, there are no moral or ethical concerns in harvesting these cells, activating them, and reintroducing them back to the patient in areas where healing and regeneration is needed. 

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