What type of stock allows shareholders to vote on corporate matters?

Common stock is the type of stock that allows shareholders to vote on corporate matters. Shareholders of common stock have the right to participate in key decisions that affect the company, such as the election of the board of directors and other significant corporate actions.

This voting power typically varies depending on the number of shares owned, with each share usually granting one vote. The ability to vote is a crucial aspect of common stock ownership, as it gives shareholders a voice in how the company is run and decisions that may impact their investment.

In contrast, preferred stockholders generally do not have voting rights. They are more focused on receiving dividends and have a higher claim on assets in the event of liquidation, which differentiates their role from that of common shareholders. Bonds and options serve different purposes in the financial realm; bonds are debt instruments where an investor lends money to the issuer in exchange for periodic interest payments and the return of principal, while options are contracts that grant the right, but not the obligation, to buy or sell an asset at a specified price before a certain date. These do not confer ownership in the company and, therefore, do not include voting rights.