Which statement about ordinary shares is true?

• A. They are the least common type of share.
• B. They have no voting rights.
• C. They usually do not pay dividends.
• D. They are the most common type of share and confer voting rights.

Answer: (D)

Ordinary shares are the main form of equity a company issues. They are typically the most common type of share and provide holders with voting rights at general meetings, which lets them influence decisions like electing directors. Dividends on ordinary shares are not guaranteed and depend on the company’s profits and board decisions, but that doesn’t contradict the fact that ordinary shares usually carry voting rights and are the standard form of equity. The statement that best captures this is that they are the most common type of share and confer voting rights. The other options misstate the typical role of ordinary shares: they are not the least common, they do have voting rights, and while dividends aren’t guaranteed, they can and do get paid when profits allow.