Which type of equity represents a company's fund-raising through shareholder investment?

The correct choice highlights common stock as the type of equity that reflects a company's fund-raising efforts through shareholder investments. When a corporation issues common stock, it is essentially selling a portion of ownership in the company to investors. These investors provide capital to the company in exchange for shares, which represent their stake in the company.

Common stockholders often have voting rights, allowing them to participate in important corporate decisions, which aligns with their role as owners of the company. This investment is crucial for businesses since the funds raised from issuing common stock can be used for various purposes, including expansion, research and development, and other operational needs.

In contrast, preferred stock represents a different class of equity that typically offers dividends but usually does not come with voting rights. Treasury stock consists of shares that were once part of outstanding shares but have been repurchased by the company, thus not representing outside investment. Retained earnings reflect the accumulated profits that a company has reinvested rather than distributed to shareholders and are not a direct result of shareholder investment.