Most modern cars are equipped with three-way catalytic converters. "Three-way" refers to the three regulated emissions it helps to reduce -- carbon monoxide, VOCs and NOx molecules. The converter uses two different types of catalysts, a reduction catalyst and an oxidization catalyst.
The reduction catalyst is the first stage of the catalytic converter. It uses platinum and rhodium to help reduce the NOx emissions.
The oxidation catalyst is the second stage of the catalytic converter. It reduces the unburned hydrocarbons and carbon monoxide by burning (oxidizing) them over a platinum and palladium catalyst. This catalyst aids the reaction of the CO and hydrocarbons with the remaining oxygen in the exhaust gas.
The third stage is a control system that monitors the exhaust stream, and uses this information to control the fuel injection system. There is an oxygen sensor mounted upstream of the catalytic converter, meaning it is closer to the engine than the converter is. This sensor tells the engine computer how much oxygen is in the exhaust. The engine computer can increase or decrease the amount of oxygen in the exhaust by adjusting the air-to-fuel ratio. This control scheme allows the engine computer to make sure that the engine is running at close to the stoichiometric point, and also to make sure that there is enough oxygen in the exhaust to allow the oxidization catalyst to burn the unburned hydrocarbons and CO