Which classification of stock allows shareholders to vote in corporate matters?

Common stock is the classification of stock that grants shareholders voting rights in corporate matters. When individuals invest in common stock, they typically have the ability to vote on key issues, such as electing the board of directors and approving significant corporate strategies or changes. This involvement gives common shareholders a say in company governance and direction.

In contrast, preferred stock usually does not include voting rights, allowing shareholders to receive dividends and benefits in the event of liquidation but not a voice in corporate governance. Convertible stock refers to preferred shares that can be converted into common shares, but the conversion does not inherently confer voting rights unless the shares are converted. Growth stock, meanwhile, refers to shares in companies that are expected to grow at an above-average rate compared to their industry or the overall market, but it does not define or affect the voting rights associated with those shares.

Understanding the distinction between these types of stock is crucial for recognizing the rights and privileges that come with different classifications and how they can impact an investor's involvement in a company's decision-making process.