Income stocks -
Click on the arrows to vote for the correct answer
A. B. C. D.A
The correct answer is A. Stocks that pay relatively high dividends.
Income stocks are those stocks that offer investors regular and stable income through dividends. These types of stocks are typically issued by well-established, mature companies that have a consistent track record of generating profits. Income stocks are popular with investors seeking regular income from their investment portfolio, such as retirees or those seeking passive income.
Dividend payments are the portion of the company's profits that are distributed to its shareholders. Companies that issue income stocks typically pay out a significant portion of their profits as dividends, often at a higher rate than the broader market average. These stocks are known as high-yield or high-dividend stocks.
On the other hand, OTC (over-the-counter) trading refers to a method of trading stocks that are not listed on major stock exchanges such as the New York Stock Exchange (NYSE) or NASDAQ. This means that answer B is incorrect because the type of exchange a stock is traded on does not necessarily determine whether it is an income stock.
Option C is also incorrect because income stocks are typically associated with high dividend payments, not low.
Therefore, the correct answer is A. Stocks that pay relatively high dividends.