Types of Stem Cells
There are three main types of stem cells, which are usually considered for their potential use in research and medicine. They differ in their ability to self-renew:

Totipotent
These stem cells have the potential to become any kind of cell in the body. After an egg is fertilized, it undergoes a series of divisions to become an embryo and later a fetus. The cells that are formed during these first few divisions are totipotent i.e. they can become any cell in the body. Human cells have this capacity only during the first few divisions of a fertilized egg. After 3 - 4 divisions of totipotent cells, these cells will not be able to differentiate into any cell type.

Pluripotent
This type of stem cell has the ability to become almost any kind of cell in the body-except the cells of the placenta or other supporting tissues of the uterus. Pluripotent stem cells result after totipotent stem cells undergo the first few divisions. Embryonic stem cells at the blastocyst stage and fetal stem cells are pluripotent.

Totipotent and Pluripotent cells are essential for the development of an entirely new organism, which is why they are found in the early stages of development.

Multipotent
These cells can give rise to several other cell types, but those types are limited to mostly cells of the blood, heart, muscle and nerves. These cells function as a repair system for damaged tissue. Adult stem cells are a good example of multipotent stem cells.

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