An investor wants to take advantage of potential capital growth but is also concerned about receiving regular income. Which type of equity security would generally be most suitable?

Question: An investor wants to take advantage of potential capital growth but is also concerned about receiving regular income. Which type of equity security would generally be most suitable?

Answer options:

• Callable preferred shares ✅ Common shares
• Straight preferred shares
• Retractable preferred shares

Correct answer: Common shares

Explanation: Common shares offer the primary potential for capital growth, while also providing income through dividends, although dividends are not guaranteed.