Which security provides ownership rights in a company?

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Multiple Choice

Which security provides ownership rights in a company?

Explanation:
Ownership in a company comes from holding equity; common stock represents an ownership stake. It often carries voting rights and a residual claim on assets after debt obligations are satisfied. Debt instruments such as senior secured debt, high yield bonds, and subordinated debt are loans to the company; holders are creditors who receive fixed interest and principal repayment, not ownership. In liquidation, creditors are paid before equity holders, so common stockholders own the company and participate in upside through price appreciation and potential dividends if declared.

Ownership in a company comes from holding equity; common stock represents an ownership stake. It often carries voting rights and a residual claim on assets after debt obligations are satisfied. Debt instruments such as senior secured debt, high yield bonds, and subordinated debt are loans to the company; holders are creditors who receive fixed interest and principal repayment, not ownership. In liquidation, creditors are paid before equity holders, so common stockholders own the company and participate in upside through price appreciation and potential dividends if declared.

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