Not Paying Fixed Income Investments

B

The correct answer to this question is C. Common stock does not pay a fixed income in the form of interest or dividend payments to investors.

Common stock represents ownership in a company, and as a shareholder, an investor can benefit from capital appreciation of the stock. However, the dividend payments made by a company to its common stockholders are not fixed, and are determined by the company's board of directors based on various factors such as the company's earnings, financial condition, and growth prospects. There is no obligation on the company to pay any dividends to its common stockholders, and if the company does not make any profits, it may not pay any dividends at all.

On the other hand, preferred stock and bonds are examples of fixed-income investments that provide a predictable stream of income to investors. Preferred stock pays a fixed dividend to its shareholders, while bonds pay a fixed rate of interest to their bondholders.

Government bonds and treasury bonds are issued by government entities, and are considered to be among the safest investments available because they are backed by the full faith and credit of the issuing government. Government bonds and treasury bonds pay a fixed rate of interest to their bondholders, and the interest payments are made periodically until the bond reaches maturity, at which point the bondholder receives the principal amount of the bond.

In summary, while preferred stock, government bonds, and treasury bonds all provide a fixed income to investors, common stock does not. The dividends paid by a company to its common stockholders are not fixed, and are subject to various factors that determine the company's profitability and ability to pay dividends.