Bonds and Preferred Stocks

C

Bonds and preferred stocks are two types of investments that typically offer investors a fixed income stream. However, they do not ensure ownership in the issuing company, which means that the answer to this question is C: Ownership.

Let's break down each answer choice:

A. Fixed income: Bonds and preferred stocks both typically offer a fixed income stream, meaning that investors receive a regular payment, such as interest or dividends, at a fixed rate. This fixed income stream can provide investors with a predictable source of cash flow, which can be useful for retirement planning or other long-term financial goals.

B. Security: Bonds and preferred stocks are both considered relatively safe investments, as they typically offer a predictable income stream and are backed by the creditworthiness of the issuing company. While there is always some level of risk involved in any investment, bonds and preferred stocks are generally considered less risky than stocks or other types of investments.

C. Ownership: While stocks represent ownership in a company, bonds and preferred stocks do not. Rather than owning a stake in the company, investors who purchase bonds or preferred stocks are essentially lending money to the company in exchange for a fixed income stream. This means that while they may receive regular payments from the company, they do not have any say in how the company is run or any right to vote on company decisions.

D. None of the above: This answer choice is incorrect, as we have already established that bonds and preferred stocks do not ensure ownership in the issuing company.

In summary, while bonds and preferred stocks do offer fixed income and security, they do not ensure ownership in the issuing company.