Which security represents ownership with voting rights and dividends?

• A. Preferred Stock
• B. Bond
• C. Treasury Stock
• D. Common Stock

Answer: (D)

Common stock represents ownership in a company and typically comes with voting rights at shareholder meetings, allowing owners to influence corporate decisions. It also offers the potential for dividends, though they aren’t guaranteed and depend on the company’s profits and board decisions. By contrast, preferred stock usually carries fixed dividends and priority over common stock for distributions and liquidation but generally lacks voting rights. A bond is a debt instrument, so the holder is a creditor, not an owner, and receives interest. Treasury stock consists of shares the company has repurchased and holds; these do not confer voting rights or dividends to the holder. Therefore, the security that represents ownership with voting rights and dividends is common stock.