Which of the following involves a fixed payment?
1) bonds
2) preferred stock
3) common stock
A)1 and 2
B)1 and 3
C)2 and 3
D)only 1

Question

Which of the following involves a fixed payment?​
1) bonds
2) preferred stock
3) common stock
A)​1 and 2
B)​1 and 3
C)​2 and 3
D)​only 1

Quizplus · Accepted Answer

Bonds and preferred stock both involve fixed payments. Bonds pay a fixed amount of interest, while preferred stock pays a fixed dividend. Common stock, on the other hand, does not have a fixed payment and the return to the investor is dependent on the company's performance.

Which of the Following Involves a Fixed Payment?​

Which of the Following Involves a Fixed Payment?