A client purchased shares of ABC Corp. and, as a shareholder, has the right to vote for the board of directors and receive dividends if declared. What type of equity security did the client most likely purchase?

Question: A client purchased shares of ABC Corp. and, as a shareholder, has the right to vote for the board of directors and receive dividends if declared. What type of equity security did the client most likely purchase?

Answer options: ✅ Common shares

• Preferred shares
• Convertible debentures
• Warrants

Correct answer: Common shares

Explanation: Common shares typically grant voting rights and the right to receive dividends, which are characteristics absent in preferred shares, debentures, or warrants.