What type of investment provides ownership in a company?

The selected answer is indeed accurate because an equity investment signifies a stake or ownership in a company. When individuals invest in equity, they purchase shares of stock, granting them a claim on part of the company's assets and earnings. This type of investment often comes with voting rights, allowing shareholders to have a say in corporate decisions.

Equity investments have the potential for capital appreciation, where the value of the shares can increase over time, and can also provide dividends, which are portions of the company's profits paid to shareholders. This aspect of equity investment distinguishes it from other types of investments, such as debt investments, which represent loans made to a company rather than ownership.

In contrast, a debt investment involves lending capital to a company, which is required to pay back the principal amount along with interest, creating a creditor relationship rather than an ownership stake. Hybrid investments blend characteristics of both equity and debt, and fixed income investments focus specifically on regular interest payments without any ownership in the issuing entity. Therefore, equity investment is the only option that clearly offers ownership rights in a company.