Which ownership interest gives stockowners voting rights and dividends?

• A. Common Stock
• B. Par Value
• C. Bond
• D. Treasury Stock

Answer: (A)

Common stock represents equity ownership in a corporation, and with that ownership come typically two main rights: voting on corporate matters at shareholder meetings and the potential to receive dividends if the board declares them. Dividends are not guaranteed, but when declared, common stockholders receive them after obligations to creditors and any preferred shareholders are met. The other items are not ownership interests that grant both voting rights and dividends: par value is just a nominal accounting figure for a share; a bond is a debt instrument rather than equity and does not confer ownership or dividends; treasury stock consists of shares the company has repurchased and held, which generally have no voting rights or dividend entitlement while in treasury.