What is a potential disadvantage of common stock?

The correct answer highlights that common stock carries the potential disadvantage of having no guaranteed dividends. This is a key aspect of common stock compared to other forms of investment, such as bonds or preferred stock, where payments (dividends or interest) are more predictable and often mandated.

For common stockholders, dividends are declared at the discretion of the company's board of directors. This means that while a company may pay dividends during profitable years, it is not obligated to do so, especially if the company faces financial difficulties or decides to reinvest its profits back into operations for growth. Consequently, stockholders may receive uncertain returns on their investment, depending on the company's performance and policies regarding profit distribution.

In contrast to the other options, the absence of guaranteed dividends is a characteristic that can significantly impact investors seeking steady income from their investments. The other options address different aspects of investing in common stock, such as control over corporate decisions, initial investment requirements, and trading opportunities, but they do not directly relate to the financial returns that common stockholders can expect in terms of dividends.