Final answer:
The correct answer is option C. The investment that provides voting rights on major company issues to the investor is Common stock. This type of investment signifies ownership in a corporation and grants voting power based on the number of shares owned. Unlike common stockholders, bondholders, mutual fund, and ETF investors generally do not have voting rights in the company.
Step-by-step explanation:
The investment that gives the investor the right to vote on major issues concerning the company is Common stock. In a public company, shareholders own the company and are entitled to vote for the company's board of directors. Ownership comes through the purchase of common stock, which is a type of security that signifies ownership in a corporation and represents a claim on part of the company’s assets and earnings. The more common stock a shareholder owns, the more voting power they have. In comparison, owners of corporate bonds, municipal bonds, mutual funds, and exchange-traded funds do not typically have voting rights in the company's decisions.
There are several key differences between stocks and bonds. Shareholders with common stock have the potential for dividends and capital gains, but they are also taking on more risk because they are last to be paid in the event of bankruptcy or liquidation. Bondholders, on the other hand, receive fixed interest payments for their investment and are higher on the priority list for repayment. Mutual funds and exchange-traded funds may contain a mix of different types of securities, and they provide diversification, but individual investors in these funds typically do not have a vote in the companies included within the funds.