Which type of stock typically carries voting rights?

• A. Preferred Stock
• B. Debt securities
• C. Common Stock
• D. Convertible Bonds

Answer: (C)

Voting rights come with ownership in the company, and common stock is the standard form that grants that ownership right. Holders of common stock typically have the ability to vote on corporate matters, such as electing the board of directors and approving major corporate actions, usually one vote per share. In contrast, preferred stock mainly offers advantages like fixed dividends and priority in liquidation but often does not include voting rights, or only provides limited voting on specific issues. Debt securities are loans to the company and do not confer any ownership or voting power. Convertible bonds are bonds that can be turned into stock; as bonds, they don’t carry voting rights until (and if) they are converted into shares. So the type that typically carries voting rights is common stock.