What investment provides ownership in publicly traded companies?

Stocks provide ownership in publicly traded companies because when an individual purchases a stock, they acquire a share of that company. This means they own a small portion of the company and, as a shareholder, they may benefit from dividends and have voting rights in certain corporate decisions. Stocks represent a claim on the company’s assets and earnings, allowing investors to partake in the company's growth and profitability.

In contrast, bonds are a type of debt investment, where investors lend money to an entity in exchange for periodic interest payments and the return of the bond’s face value at maturity. Funds, such as mutual funds or exchange-traded funds (ETFs), are pooled investment vehicles that can include stocks, bonds, or other securities, but do not directly provide ownership of individual companies. Options are contracts that give investors the right to buy or sell an underlying asset at a predetermined price before a specified expiration date, but they do not confer ownership of the asset itself. Therefore, stocks are the only option that directly indicates ownership in publicly traded companies.