Which term describes a form of ownership that typically includes voting rights in a corporation?

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

Answer: (A)

Common stock represents ownership in a corporation and is the form of equity most closely tied to investor influence. It typically includes voting rights, such as one vote per share on matters like electing the board of directors and approving major corporate changes. This voting feature distinguishes it from other securities. Preferred stock often has priority for dividends and assets but usually lacks voting rights, or has limited ones. Bonds are a form of debt and do not confer ownership or voting rights. Mutual funds are investment vehicles that own portfolios of securities; owning fund shares does not grant you voting rights in the companies the fund holds.