Elaina wants to make an investment in a public company. She wants to buy stock that not only pays her a comfortable dividend on a regular basis, but also gives her a significant say in the company's major decisions. What kind of investment should she make?

Question

Quizplus · Accepted Answer

Common stock is the only type of stock that provides voting rights to shareholders. Preferred stock typically does not provide voting rights, but rather guarantees a fixed dividend payment. While some common stock may have a cumulative provision for dividends, it is not a guarantee and is not necessary for the goal of having a say in major company decisions. Therefore, purchasing common stock is the best choice for Elaina's specific investment goals.

Elaina Wants to Make an Investment in a Public Company