Which characteristic distinguishes "common stock" from "preferred stock"?

The distinguishing characteristic that separates common stock from preferred stock is the provision of voting rights. Common stockholders typically have the right to vote on fundamental corporate matters, including the election of the board of directors and significant corporate policies. This right empowers common stockholders to influence the direction of the company.

In contrast, preferred stock generally does not carry voting rights, making it less participative in terms of corporate governance. While preferred stock may offer other advantages, such as fixed dividends or priority in asset distribution in the event of liquidation, the absence of voting rights is a fundamental difference from common stock.

The other options highlight attributes that do not accurately differentiate common stock from preferred stock or mischaracterize the nature of preferred stock. Fixed dividends are a feature associated with preferred stock, not common stock. While it's true that preferred stock can involve certain risks, it is typically considered less risky than common stock due to its priority in dividend payments and claims on assets. Lastly, preferred stock is not restricted solely to executives; it can be offered to various investors, similar to common stock.