Common stock represents an equity ownership interest in a corporation. A common stockholder is a residual owner: the investor may benefit from capital appreciation, may receive dividends if declared by the board of directors, and typically has voting rights. However, common stock does not provide fixed dividend payments. Dividends on common stock are discretionary and may be increased, reduced, omitted, or resumed depending on corporate earnings, board policy, and capital needs. Choice B describes a feature more closely associated with preferred stock, which generally pays a stated dividend. Choices C and D are incorrect because common stock has the lowest priority in liquidation. In a corporate liquidation, secured creditors and bondholders are paid before preferred shareholders, and preferred shareholders are paid before common shareholders. Common shareholders receive only what remains after all senior claims are satisfied. The SIE outline places common stock under “Equity Securities” and specifically identifies the need to know “Ownership,” “order of liquidation,” “limited liability,” and “voting rights.” Those points directly support choice A. Reference: Section 2.1.1 Equity Securities; common stock, ownership, voting rights, and liquidation priority.