I really suggest reading the All Things Root guide for your phone, there will be a lot of good information in there.
The Stock ROM is what comes on your phone. It's whatever the manufacturer and the carrier wanted on there.
Custom ROMs are made by developers to try to improve on the stock ROM. They often have speed boosts, battery improvements, or extra options and tweaks. You would have to read about each individual ROM to find out exactly what it offers.
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