In what way does stock ownership benefit shareholders?

Stock ownership benefits shareholders primarily through their ability to vote on company decisions. When individuals purchase shares of a company, they become part owners and are granted rights that often include voting on important matters such as electing the board of directors, approving major mergers or acquisitions, and making decisions on corporate policies. This voting power enables shareholders to have a direct say in how the company is run and to influence its strategic direction.

The other options do not accurately reflect the nature of stock ownership. Shareholders do not receive guaranteed earnings, as dividends are paid at the discretion of the company and are not guaranteed. Additionally, investing in stocks inherently carries risks, including the potential loss of capital, which contradicts the idea that shareholders have no risk involved. Lastly, while shareholders may influence market prices indirectly through their buying and selling actions, they do not have the power to directly set prices, as market prices are determined by broader supply and demand dynamics.