A security with voting rights that represents ownership in a corporation is known as which?

• A. Common Stock
• B. Preferred Stock
• C. Bond
• D. Mutual Fund

Answer: (A)

Ownership and control in a corporation are linked to voting rights. Common stock is the security that represents an actual ownership stake in a company and typically carries voting rights, allowing shareholders to vote on matters like electing directors and other corporate actions. This is what lets shareholders influence how the company is run.

By contrast, preferred stock usually provides fixed dividends and a higher claim on assets but often lacks voting rights. A bond is a debt instrument: the holder is a creditor who receives interest and principal, not an owner with a vote. A mutual fund is an investment vehicle that pools money to buy a diversified portfolio of securities; it does not grant direct ownership in any single corporation, and voting happens at the fund level rather than in the underlying companies.

So, the instrument that best fits “voting rights and ownership in a corporation” is common stock.