Which type of stock provides voting rights and the potential for dividends?

Common stock is the type of stock that provides shareholders with voting rights and the potential for dividends. Shareholders of common stock have the right to vote on key company decisions, such as electing the board of directors or approving major corporate actions. This voting power is a significant aspect of owning common stock, as it allows investors to have a say in the governance of the company in which they have invested.

Moreover, common stockholders can earn dividends, which are portions of the company's earnings that are distributed to shareholders. While dividends are not guaranteed and can vary based on the company’s performance and policies, common stock typically has higher potential for growth compared to other stock types, which is why investors are attracted to it. The ability to benefit from dividend payments and to participate in company decisions makes common stock a versatile investment option for many shareholders.